WHICH VARIABLES PREDICT INDONESIA'S INFLATION?

  • Susan Sunila Sharma Deakin Business School, Deakin University
Keywords: Macroeconomic Variables, Inflation, Time-series, Predictability

Abstract

We use an exhaustive list of Indonesia’s macroeconomic variables in a comparative analysis to determine which predictor variables are most important in forecasting Indonesia’s inflation rate. We use monthly time-series data for 30 macroeconomic variables. Using both in-sample and out-of-sample predictability evaluations, we report consistent evidence of inflation rate predictability using 11 out of 30 macroeconomic variables.

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Published
2019-04-30
Section
Articles