Abstract
Inflation is a condition in which there is a sharp (absolute) increase in prices that lasts continuously for a long period of time followed by a decline in the real (intrinsic) value of a country's currency. circulating through an increase in bank interest rates. For this reason, the government carries out monetary policy by suppressing the money supply through increasing bank interest rates. However, the interest rate has various kinds, namely classical interest rate theory, neo classical, modern keyness and hicks. Therefore, this study focuses more on interest rates and the theory of interest rates by experts. So that it produces descriptive research.
Highlights
Inflation is one of the effects of a prolonged economic crisis that hit a country
Hicks put forward his theory that the interest rate is in equilibrium in an economy if this interest rate meets the balance of the monetary sector and the real sector
Interest rates are determined by the government and the supply of money
Summary
Inflation is one of the effects of a prolonged economic crisis that hit a country. Inflation is a condition where a sharp (absolute) increase in prices lasts continuously for an extended period, followed by a decline in the real (intrinsic) value of a country's currency. For banks, the more considerable public funds raised can raise, the greater the ability of banks to finance their operational activities, which are primarily in the form of lending public. For this reason, the government implements monetary policy by suppressing the money supply by increasing bank interest rates. How is the comparative analysis of the interest rate theory?. Purpose Based on the formulation of the problem above, see can see that the purpose of these papers is so that academics, students and the general public know about interest rates. As well as how the comparative analysis of the theory of interest rate
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