INFLASI DAN PERTUMBUHAN EKONOMI : UJI KAUSALITAS

Abstract

This study aims to testing of  causality between Inflation And Economic Growth and  in Indonesia Period 1998.1-2010.4.The tools of analys is Granger Causality Test and Eangle-Granger cointegration test. Granger causality test results of the inflation variables and economic growth have bilateral causality. Based on the results Eangle-Granger cointegration test shows that the regression results have the same degree of integration so that there are significant long-run stable relationship between inflation with economic growth in Indonesia period 1998.1-2010.4.

Key words: causality , cointegration, Inflation , economic growth