Modeling inflation and money supply using spatial vector autoregressive (1,1)

Eni Sumarminingsih, Setiawan*, Agus Suharsono, Budi Nurani Ruchjana

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

Economically, Inflation is influenced by Inflation in the previous period and Inflation of other cities. Likewise, with the Money Supply. In addition, Inflation is also related to the Money Supply. The purpose of this study is to examine spatio-temporal relationships of Inflation and Money Supply of four cities in East Java (Surabaya, Malang, Kediri and Jember) simultaneously. A Spatial Vector Autoregressive (SpVAR) model was used to examine the relationship. SpVAR is a model that can be used to find the relationship between several variables at the same location at previous periods, also the relationship between several variables at different locations at previous periods. The results of this study are the the Inflation of Malang is affected by Inflation of three other cities a month earlier. Inflation of Jember is affected by Inflation of Jember a month earlier. Money Supply of Jember, Surabaya and Malang are influenced by the Money Supply one month earlier from the city itself. In addition, Money Supply of Kediri is affected by Inflation of three other cities a month earlier, Money Supply of Kediri and Money Supply of the other three cities a month earlier.

Original languageEnglish
Title of host publication8th Annual Basic Science International Conference
Subtitle of host publicationCoverage of Basic Sciences toward the World's Sustainability Challenges
EditorsCorina Karim, Rodliyati Azrianingsih, Mauludi Ariesto Pamungkas, Yoga Dwi Jatmiko, Anna Safitri
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735417397
DOIs
Publication statusPublished - 17 Oct 2018
Externally publishedYes
Event8th Annual Basic Science International Conference: Coverage of Basic Sciences toward the World's Sustainability Challanges, BaSIC 2018 - Malang, East Java, Indonesia
Duration: 6 Mar 20187 Mar 2018

Publication series

NameAIP Conference Proceedings
Volume2021
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference8th Annual Basic Science International Conference: Coverage of Basic Sciences toward the World's Sustainability Challanges, BaSIC 2018
Country/TerritoryIndonesia
CityMalang, East Java
Period6/03/187/03/18

Keywords

  • Inflation
  • money supply
  • spatial vector autoregressive
  • spatio-temporal

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