Abstract
This research will measure the potential output in Indonesia using Kalman-filterand Hodrick-Prescott Filter. The model will observe the variations of output gapand inflation in Indonesia. The model of Kalman Filter shows a long-term trend ofoutput nearly to actual output than the other model, however it shows a slow responsethan Hodrick-Prescott Filter. Keywords: Output Gap, Inflation, Kalman filter and Hodrick – Prescote Filter.
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