Analisis Paritas Daya Beli Pada Kurs Rupiah terhadap Dolar Amerika Serikat Periode September 1997 – Desember 2007 dengan Menggunakan Metode Error Correction Model

Grisvia Agustin

Abstract


Purchasing Power Parity theory is the one of exchange rate determination theory that commonly been tested its validity. This theory explains relationship among relative inflation rate with international currency exchange rate. This research uses error correction model to test the validity of theory on rupiah exchange rate to American dollar on the floating exchange rate system. Data to be analyzed are monthly data from September 1997 to December 2007. Analysis result proves the validity of PPP theory in Indonesia. It is urging to maintain the price stability that reflects inflation. The difference of price level can exacerbate exchange rate in the short term as well as in the long term.
Keywords: purchasing power parity, floating exchange rate system, error correction model
_________________________________________________________________________________

Full Text:

PDF

Refbacks

  • There are currently no refbacks.


ISSN: 2086-1575  E-ISSN: 2502-7115

SHERPA/RoMEO LogoMoraref

 Creative Commons License

This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.