Abstract
This study aims to analyze and explain the effect of interest rates, money supply and exchange rates on inflation in North Sumatra Province in the 2001-2021 period. The type of data used is a secondary type of data, namely existing or published data taken from BPS (Central Statistics Agency) North Sumatra data and this research was processed using the OLS (Ordinary Least Square) method contained in multiple regression analysis. The results of the study explain that interest rates have a positive and significant effect on inflation in North Sumatra Province. Meanwhile, the money supply and exchange rate have a negative and significant effect on inflation. Therefore, if interest rates are high, it will have a positive impact on inflation in North Sumatra, as well as the money supply and high exchange rate will have a negative impact on inflation. In this case, this article shows the appropriate framework or policy for developing future research by analyzing variables that affect the economy.
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