文章基本信息

标题：THRESHOLD EFFECT IN THE RELATIONSHIP BETWEEN INFLATION RATE AND ECONOMIC GROWTH IN INDONESIA
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作者：Adam Luthfi Kusumatrisna ; Iman Sugema ; Syamsul H. Pasaribu 等
期刊名称：Bulletin Ekonomi Moneter dan Perbankan
印刷版ISSN：1410-8046
电子版ISSN：2460-9196
出版年度：2022
卷号：25
期号：1
页码：117-126
DOI：10.21098/bemp.v25i1.1045
语种：Indonesian
出版社：Bank Indonesia
摘要：This paper investigated the linear and nonlinear relationships between inflation and economic growth in Indonesia using provincial data from 1994 to 2019. The linear model revealed that inflation has a significant negative effect on economic growth, while the nonlinear model revealed that inflation would negatively affect economic growth only after exceeding a threshold value of 9.59 percent. Excluding a high inflationary structural break, we found an inflation threshold of 5.22 percent. Furthermore, we found that the threshold of inflation rate in the eastern regions of Indonesia was higher than that of the western regions, namely 9.64 percent and 5.75 percent, respectively. These findings have significant implications for inflation targeting and management both at the national and regional levels.