Kurva Phillips Di Indonesia

Abstract

This paper aims to analyze the existence of the Phillips curve in the Indonesian economy, 2000QI-20JOQ3. The results obtained by using OLS method shows that the expectations augmented Phillips curve and the New Keynesian Phillips curve models cannot give a clear results of Phillips curve existence in the Indonesia economy. Shocks variable such as percentage change of exchange rates and crude oil prices provide a very small effect on the inflation rate in Indonesia. Furthermore, the results obtained by using GMM method on the hybrid model of the Indonesian economy.