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The Covid-19 Pandemic and Inflation in Indonesia

Author

Listed:
  • Aulia Rayna ASMADINA

    (Department of Development Economics, Faculty of Economics,Sriwijaya University, Indonesia)

  • Ariodillah HIDAYAT

    (Department of Development Economics, Faculty of Economics,Sriwijaya,University, Indonesia)

  • Imam ASNGARI

    (Department of Development Economics, Faculty of Economics,Sriwijaya,University, Indonesia)

  • Sri ANDAIYANI

    (Department of Development Economics, Faculty of Economics,Sriwijaya,University, Indonesia)

Abstract

The Indonesian government has implemented a social distance policy that aims to break the chain of the pandemic that has a large impact on the economy which causes an increase in unemployment, poverty, and the inflationary gap. This study aims to determine what factors affect inflation in Indonesia from the beginning of the time Covid-19 pandemic. The data used is secondary data that has been collected and processed from January 2019 to December 2020. The analysis method used is the Error Correction Model method. The results showed that the level of credit distribution and the exchange rate had a positive effect on the inflation rate in Indonesia both in the short-run and in the long run. Furthermore, exports and the Covid-19 had a negative and significant effect on the inflation rate in Indonesia in the short and long term.

Suggested Citation

  • Aulia Rayna ASMADINA & Ariodillah HIDAYAT & Imam ASNGARI & Sri ANDAIYANI, 2021. "The Covid-19 Pandemic and Inflation in Indonesia," Romanian Journal of Economics, Institute of National Economy, vol. 53(2(62)), pages 27-39, December.
    • Handle: RePEc:ine:journl:v:53:y:2021:i:62:p:27-39
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Inflation; Credit Distribution Rate; Export; Exchange Rate; Covid-19;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • A10 - General Economics and Teaching - - General Economics - - - General

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