GLOBALISASI DAN INFLASI

Abstract

There is a different views in economic scientist about globalization and inflation relation. First view, The Globe –Centric Approach : Globalization can effect domestic inflation. The second view
is The Country-Centric Approach, Inflation is exclusive, there is no relation between globalization and inflation. How about Indonesia ? Does Indonesia follow The Global-Centric or The Country-
Centric Approach ? This research shows that globalization is negative significant to inflation in the long run, but no effect in the short run. So, Indonesia follows The Global-Centric Approach.

Key words: globalization, inflation, the globe- centric approach, the country-centric approach.