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Library's collection Library's IT development CancelThis research was undertaken by the writer to evaluate the topic of Inflation of
Indonesia, so that this research is a case study of Inflation in Indonesia for time period of
January 1996 - June 1998 , expesially the period of monetary crisis from July 1997 June
1998 . This research uses secondary data consisting of data showing the change of
money supply , the change of domestic aggregate supply , the change of the Rupiah /
Dollar exchange rate , the average change of about foreign inflation , the change of
dummy variables such as national events. The data was obtained from the Indonesian
Central Bank and Central Bureau of Statistics.
The research used multiple regression. The research showed that in the period
January 1996 - June 1998 , Inflation in Indonesia was influenced by the change of money
supply , the change of domestic aggregate supply and the change of the Rupiah / Dollar
exchange rate . While, for the period of the monetary crisis July 1997 - June 1998
Inflation in Indonesia was just influenced by the change of money supply. This shows
that during the monetary crisis the Indonesian government focused its attention on
monetary policy rather than considering other economic factors , so during the monetary
crisis, Inflation in Indonesia is a monetary phenomena.