Analisis efektivitas inflation targeting dan persistensi inflasi di Indonesia

Deskripsi

This research will study the effectivity of inflation targeting?s implementation as measured by inflation persistence degree and its implications for monetary policy. The estimation results using AR(1) method for the period of January 2000 until April 2010 show that inflation targeting?s implementation is not (or not yet) effective in influencing the reduction of the degree of inflation persistence. Regarding the result, Bank Indonesia should pay attention on three points. First, the evaluation of monetary policy transmission mechanism, Indonesia?s inflation characteristics, and inflation targeting?s characteristics accordance. Second, the improvement in coordination between Bank Indonesia and the government to minimize supply side inflation. Third, improvement in communication to the public to lead their inflation expectation and minimize the effects of assymetric information that could potentially harm Bank Indonesia?s credibility.Ada tabel