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Explaining chronic inflation in Indonesia

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  • Ross McLeod

Abstract

This paper describes and analyses Indonesia's frustrating experience with chronic inflation, and demonstrates that the cause of continuing moderately high inflation is excessive growth of base money. It examines the central bank's current target growth rates for narrow and broad money and bank lending, and argues instead in favour of a single target rate for base money as the key to bringing inflation under control.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00220389708422471
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 33 (1997)
Issue (Month): 3 ()
Pages: 392-410

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Handle: RePEc:taf:jdevst:v:33:y:1997:i:3:p:392-410

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Cited by:
  1. Mudrajad Kuncoro & Tri Widodo & Ross McLeod, 2009. "Survey of recent developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(2), pages 151-176.
  2. Arief Ramayandi, 2001. "Optimum Monetary Instrument Option in the Case of a Small Open Economy," Working Papers in Economics and Development Studies (WoPEDS) 200101, Department of Economics, Padjadjaran University, revised Sep 2001.
  3. Stephen Grenville, 2000. "Monetary Policy and the Exchange Rate During the Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(2), pages 43-60.
  4. Siregar, Reza & Rajaguru, Gulasekaran, 2005. "Sources of variations between the inflation rates of Korea, Thailand and Indonesia during the post-1997 crisis," Journal of Policy Modeling, Elsevier, vol. 27(7), pages 867-884, October.
  5. Tubagus Feridhanusetyawan, 1997. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 33(2), pages 3-39.
  6. Reza Anglingkusumo, 2005. "Money - Inflation Nexus in Indonesia: Evidence from a P-Star Analysis," Tinbergen Institute Discussion Papers 05-054/4, Tinbergen Institute.

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