THE ANALYSIS FACTORS OF BI RATE, MONEY IN CIRCULATION, AND EXCHANGE RATES TOWARD INFLATION PERIOD 2009 - 2013

Abstract

This skripsi titled the affecting of the BI rate, Money in circulation, and Exchange rates toward Inflation in Indonesia during monthly January 2009 - September 2013. The data used in this study is a secondary data obtained from the Central Bank (Bank Indonesia). The variables used are: BI Rate, Money in circulation, and Exchange Rate. The objectives of this research are to investigate the effect of BI rate, Money in circulation, and and Exchange rates toward inflation in Indonesia during January 2009 – September. This research is using time series data from Bank of Indonesia and BPS (BadanPusatStatistik) report monthly of January 2009 to September 2013. In this study, researchers used regression and quantitative methods, which describe a problem with analyzing the data and matters relating to the numbers or calculation formulas used to analyze the problem being studied. The result of F test in this research shows the significant simultaneous influence of BI rate, Money in circulation, and Exchange rate toward Inflation in Indonesia. While the research of t test shows BI rate and Money in circulation partially has positive and significant influence to Inflation in Indonesia, while Exchange rate has negative andnot significant influence to inflation. BI has dominant influence to Inflation among the independent.