ANALISIS HUBUNGAN ANTARA INFLASI DAN PERTUMBUHAN EKONOMI: KASUS INDONESIA

Ismail Fahmi Lubis

Abstract


Abstract
The Phenomena and trends of level of inflation which seem to be high as caused by 
factors or government policies whilst the level of economic growth averagely shows 
high and sustainable growth drawing the unusual macroeconomic condition in 
Indonesia. This research is conducted to find Correlation and Short-run as well as 
Long-run relationship between inflation and economic in Indonesia during 1968-
2012. Besides, it is to find Granger-Causality between the Consumer Price Index 
(CPI) and Gross Domestic Product (GDP). It first tests its Unit-Root by 
Augmented Dickey Fuller and Dickey Fuller test, then it tests its Cointegration by 
Johansen Cointegration test and its causal relationship by Granger-Causality test 
as well as it makes mechanism of Error Correction Model (ECM). It is found both 
inflation and economic growth have no Unit-Root. It is found both inflation and 
economic growth have Correlation. It is found significantly long-run relationship 
through the probability value of its residual and short-run relationship through the 
probability value of inflation and economic growth in its differentiation. It is then 
found significantly one-way Granger-causality GDP causes CPI but not found 
one-way Granger-causality CPI causes GDP.

Keywords : Inflation, Economic Growth


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