2018 : Modeling inflation and money supply using spatial vector autoregressive (1,1)

Dr.Drs Agus Suharsono MS.

Year

2018

Published in

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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 …