Cointegration of Interest Rate, Inflation, Exchange Rate, and Economic Growth in Indonesia

Margarita Ekadjaja; Halim Putera Siswanto; Rorlen Rorlen; Christiandinata Tjandra Bravo; Wilson Wijaya

doi:10.2991/978-94-6463-508-9_16

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Cointegration of Interest Rate, Inflation, Exchange Rate, and Economic Growth in Indonesia

Authors

Margarita Ekadjaja¹^{, *}, Halim Putera Siswanto¹, Rorlen Rorlen¹, Christiandinata Tjandra Bravo¹, Wilson Wijaya¹

¹Universitas Tarumanagara, Jakarta, 11470, Indonesia

^*Corresponding author. Email: margaritae@fe.untar.ac.id

Corresponding Author

Margarita Ekadjaja

Available Online 19 September 2024.

DOI: 10.2991/978-94-6463-508-9_16 How to use a DOI?
Keywords: Interest; inflation; exchange rate; GDP
Abstract: The economy is the most important thing for a country and plays a big role for the people in that country. The economy of a country that continues to experience consistent growth can make that country undergo a transformation in a better direction so that it can compete with the economies of other countries so that it can improve the welfare of its people and stimulate investor intentions to invest in that country. However, movements in inflation, interest rates and exchange rate fluctuations that continue to fluctuate from year to year can make the economy in Indonesia inconsistent and vulnerable to changes in economic conditions. The purpose of this study is to analyze the cointegration between interest rate movements, inflation, and exchange rate fluctuations with the economic transformation in Indonesia. This research uses data that has been collected based on time intervals, which are measured monthly for the period 2020 to 2022. The results show that there is cointegration and a short-term causal relationship between interest rate movements, inflation, and exchange rate fluctuations on the Indonesian economy during a pandemic and endemic.
Copyright: © 2024 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the Twelfth International Conference on Entrepreneurship and Business Management 2023 (ICEBM 2023)
Series: Atlantis Highlights in Economics, Business and Management
Publication Date: 19 September 2024
ISBN: 978-94-6463-508-9
ISSN: 2667-1271
DOI: 10.2991/978-94-6463-508-9_16 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Margarita Ekadjaja
AU  - Halim Putera Siswanto
AU  - Rorlen Rorlen
AU  - Christiandinata Tjandra Bravo
AU  - Wilson Wijaya
PY  - 2024
DA  - 2024/09/19
TI  - Cointegration of Interest Rate, Inflation, Exchange Rate, and Economic Growth in Indonesia
BT  - Proceedings of the Twelfth International Conference on Entrepreneurship and Business Management 2023 (ICEBM 2023)
PB  - Atlantis Press
SP  - 197
EP  - 208
SN  - 2667-1271
UR  - https://doi.org/10.2991/978-94-6463-508-9_16
DO  - 10.2991/978-94-6463-508-9_16
ID  - Ekadjaja2024
ER  -

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