Abstract

Macroeconomic problems in the short term is not easy to overcome is the problem of inflation. The problem of inflation appears marked by rising prices in general and is continuous. To see the problem of inflation, then made a study. This study aims to look at and analyze the significance of variables PDRB Real, Minimum Wage, and lag inflation to inflation in the region of Jakarta, Banten, West Java, Central Java, Yogyakarta and East Java, North Sumatra, South Sumatra, South Sulawesi, Kalimantan South and Bali. This study uses a dynamic panel models with observational data of 11 provinces 2009-2013. The results of this study states that in partial real GRDP, UMP variables and variable lag inflation have a significant effect on inflation while simultaneously (together) real GRDP variables, variables UMP, and variable lag inflation is also a significant effect on inflation. The implications of these findings are variable real GRDP, UMP, and lag inflation is an appropriate instrument to influence inflation in the region of Jakarta, Banten, West Java, Central Java, Yogyakarta and East Java, North Sumatra, South Sumatra, South Sulawesi, Kalimantan South and Bali. Keywords: Real GRDP, UMP, Lag Inflation, Inflation, Dynamic Panel.

Full Text
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