Thesis
Published
THE DETERMINANT OF INFLATION AND ITS SOLUTION IN MUSLIM SCHOLARS
Abstract
ABSTRACT
The Determinant of Inflation and its Solution in Muslim Scholars
Dian Septi Purnamasari
36.2015.4.1.0784
This study is an attempt to discuss the determinants of inflation in
Indonesia using a data set from 2010 to 2018. The purpose of this study
to find out what are the factors affecting inflation in Indonesia during
the period 2010-2018 and may provide a solution to high inflation in
accordance with the perspective of Islamic Economics. Empirical analysis
performed by the application of VAR/VECM. The estimation methods find
the short-run and long-run impact of each variable on inflation and also
found the speed of adjustment. The analysis used Islamic money supply,
external debt, exchange rate, exports and imports of goods. The results of
this study indicate that the foreign debt, the exchange rate and imports had
a significant impact on inflation, where the exchange rate and imports have
a positive impact on inflation but foreign debt implies a negative impact on
inflation. In fact, money supply and exports are not significant and have an
impact on inflation. The findings for short-run effect, showed that external
debt proves to be a significant determinant of inflation in short-run. In sum,
the Islamic economic perspective, the prevention of inflation included in
the rule maṣālih al-mursalah, prevention means inflation is expected to
provide welfare for all parties and prevents some people harmed (mafsadat)
in accordance with the Islamic view. So the government should. So for the
government should take the solution in the rule al maṣlahah uṣul fiqh al
āmmah.
Keywords: Inflation, Islamic Money Supply, External Debt, Exchange
Rate, Export, Import
Publication Details
InstitutionUniversittas Darussalam Gontor
DepartmentFakultas Eknomi dan Manajemen
SubjectsH Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HC Economic History and Conditions
Item ID2200
Deposited26 Mar 2023 02:50