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Karakteristik Tekanan Inflasi Di Indonesia: Pengaruh Dinamis Sisi Permintaan Penawaran Dan Prospek Ke Depan

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  • Solikin M. Juhro

    (Bank Indonesia)

Abstract

This preliminary study is aimed to look into characteristics of inflation and sources of shocks triggering inflation pressures in Indonesia. A focus will be directed to find a better measurement about the role of supply and demand shocks. Based on parsimonious model estimation, it can be concluded that the contribution of supply shocks predominant demand shocks proportionally, implying that a prudent monetary policy is still feasible and can be implemented effectively along with the structural efforts to combat inflation in Indonesia. A further preliminary exercise shows that the prospect of inflation pressures in two year ahead will be statistically the same with the 2006 inflation pressures. However, cautious policy response should be taken in the second year as inflation pressures from supply side will be poten tially greater.

Suggested Citation

  • Solikin M. Juhro, 2007. "Karakteristik Tekanan Inflasi Di Indonesia: Pengaruh Dinamis Sisi Permintaan Penawaran Dan Prospek Ke Depan," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 9(3), pages 1-16, January.
    • Handle: RePEc:idn:journl:v:9:y:2007:i:3:p:1-16
    DOI: https://doi.org/10.21098/bemp.v9i3.209
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    More about this item

    Keywords

    Characteristics of inflation; supply shock; demand shock; inflation; Indonesia;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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