Research Article
Impact of Monetary Instrument Shock Against Inflation in North Sumatra: Two-Stage Least Square Method
@INPROCEEDINGS{10.4108/eai.8-10-2018.2289252, author={Nelly Hutajulu and Fitrawaty Fitrawaty and Muhammad Fitri Rahmadana}, title={Impact of Monetary Instrument Shock Against Inflation in North Sumatra: Two-Stage Least Square Method}, proceedings={Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 2018, 8-9 October 2018, Medan, North Sumatra, Indonesia}, publisher={EAI}, proceedings_a={ICEMAB}, year={2019}, month={11}, keywords={inflation gross domestic product (gdp) money supply interest rate of bank indonesia exchange rate unemployment two-stage least square (2sls)}, doi={10.4108/eai.8-10-2018.2289252} }- Nelly Hutajulu
Fitrawaty Fitrawaty
Muhammad Fitri Rahmadana
Year: 2019
Impact of Monetary Instrument Shock Against Inflation in North Sumatra: Two-Stage Least Square Method
ICEMAB
EAI
DOI: 10.4108/eai.8-10-2018.2289252
Abstract
The study explores the relationship among inflation and economic growth in North Sumatra. Two-Stage Least Square (2SLS) technique is used to analyze the impact of monetary instrument shock against inflation the period of 1994-2017. The result of research concludes that economic growth effect significantly to inflation in North Sumatra and positive direction. The amount of money in circulation, the money supply previous period a significant and negative effect against inflation in North Sumatra. interest rate of Bank Indonesia, unemployment is a significant and positive effect against inflation in North Sumatra. Inflation has no effect on against the economic growth of North Sumatra. The amount of money in circulation, a significant and positive effect toward economic growth in North Sumatra. While the money supply previous period does not affect economic growth in North Sumatra
