Abstract
This study aims to analyze the effect of interest rate, money supply,
exchange rate and inflation targeting framework policy on inflation in Indonesia.
The type of this research are descriptive and associative using time series data from
the first quarter of 1997 until the fourth quarter of 2015 with documentation data
collected technique. Data were analyzed with multiple linear regression model, the
prerequisite test (multicolinearity, autocorrelation and heteroscedasticity), t test, and
F test. The result shows that (1) Interest Rates has positive and significant effect on
inflation in Indonesia. (2) Money Supply has positive and not significant effect on
inflation in Indonesia. (3) Exchange rate has negative and not significant effect on
inflation in Indonesia. (4) Inflation Targeting Framewrok Policy has positive and
significant effect on inflation in Indonesia.
exchange rate and inflation targeting framework policy on inflation in Indonesia.
The type of this research are descriptive and associative using time series data from
the first quarter of 1997 until the fourth quarter of 2015 with documentation data
collected technique. Data were analyzed with multiple linear regression model, the
prerequisite test (multicolinearity, autocorrelation and heteroscedasticity), t test, and
F test. The result shows that (1) Interest Rates has positive and significant effect on
inflation in Indonesia. (2) Money Supply has positive and not significant effect on
inflation in Indonesia. (3) Exchange rate has negative and not significant effect on
inflation in Indonesia. (4) Inflation Targeting Framewrok Policy has positive and
significant effect on inflation in Indonesia.