Analisis Inflation Targeting Framework (ITF) dan Perubahan Respon Kebijakan Moneter

Abstract

The implementation of the ITR (Inflation Targeting Framework) in the Central Bank's new monetary policy by targeting inflation indicates its commitment and accountability to apply monetary policy on ITR to achieve stability in price. The objective of this research is to determine whether the real interest rate, inflation, inflation discrepancy, and salary output have an influence on the BI rate, and whether the inflation target, output gap, Bl rate, M2, rate of exchange and WTI oil price have an influence on inflation. Another objective is to find out whether the response to monetary policy adapts to the implementation of ITF. The observation period is from 2014 to 2023, using monthly data. The data are analyzed using a simultaneous equation model called Two-Stage Least Square (2SLS). The results of the research show that the variable of real interest rate has a positive and significant influence on Bl interest rate, the variable of inflation (P) has a positive and significant influence on BI rate of exchange, the variable of inflation discrepancy (IG) has a positive and significant influence inflation, the variable of exchange rate has a positive and significant influence on inflation, the variable of WTI price has a positive and significant influence on inflation, however the circulation of money does not have any significant influence on inflation.