Abstract

The purpose of this study is to find out whether the money supply and the rupiah exchange rate can have an effect on inflation for the 2017-2021 period. This study uses a quantitative method with an associative approach. The test results on the money supply variable are -9.552252 and a significance of 0.0000. The test results on the exchange rate variable are -2.581866 with a significance of 0.0124. And the f test results produce a value of 77.29357. Partially the money supply and exchange rate have a negative and significant effect on inflation and simultaneously the money supply and the rupiah exchange rate have a positive effect on inflation. In theory, a negative result indicates that the more money in circulation and the higher the rupiah exchange rate, the lower the inflation. This was caused by the covid-19 pandemic resulting in sluggishness in money circulation.

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