Inflation and Monetary Policy Rules

Language: English

Published by LAP LAMBERT Academic Publishing Nov 2011, 2011

384659511X / 9783846595114

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This item is printed on demand - Print on Demand Titel. Neuware -This thesis studies price behaviour, the determinants of inflation, threshold effects, and policy rules in Indonesia. The study reveals that the ¿relative¿ law of one price holds and prices of 35 sub-categories within 45 cities in Indonesia exhibit convergence. Inflation in Indonesia is found to be affected by expected inflation (backward-looking expectations and forward-looking expectations), the output gap, exchange rate depreciation, and money growth. Backward-looking inflation expectations dominate the form of inflation expectations. This study also finds non-linearity in the Phillips curve. The effect of exchange rate depreciation on CPI inflation is found to be linear. However, the effect of money growth on inflation is not linear. The study also reveals that the inflation forecast based rule with contemporaneous output gap (IFBG) is the most efficient rule for Indonesia. The rule suggests that the central bank should react strongly on the inflation deviation from the target, react moderately on the output gap and smooth the interest rate with optimal horizon to be 3-4 quarters.VDM Verlag, Dudweiler Landstraße 99, 66123 Saarbrücken 328 pp. Englisch.…

Seller Inventory # 9783846595114

Title
Inflation and Monetary Policy Rules
Author
Rizki Wimanda
Publisher
LAP LAMBERT Academic Publishing Nov 2011
Publication year
2011
Condition
Neu
Binding
Taschenbuch
Language
English
ISBN 10
384659511X
ISBN 13
9783846595114
Item weight
506 grams
Dimensions
220x150x21 mm

buchversandmimpf2000

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