Forecasting Inflation in Indonesia

Ramakrishnan, Uma; Vamvakidis, Athanasios

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Forecasting Inflation in Indonesia

IMF Working Paper No. 02/111

24 Pages Posted: 31 Jan 2006

See all articles by Uma Ramakrishnan

Uma Ramakrishnan

International Monetary Fund (IMF) - Policy Development and Review Department

Athanasios Vamvakidis

International Monetary Fund (IMF) - European Department

Date Written: June 2002

Abstract

A reliable inflation-forecasting model is central for a sound monetary policy framework. In this paper, we study the domestic and international transmission effects on inflation in Indonesia and analyze the possible leading indicators of inflation. We identify the exchange rate, foreign inflation, and monetary growth as the main variables with a significant predictive power for inflation in Indonesia.

Keywords: Indonesia, inflation forecasting

JEL Classification: C51, E31, E37

Suggested Citation: Suggested Citation

Ramakrishnan, Uma and Vamvakidis, Athanasios, Forecasting Inflation in Indonesia (June 2002). IMF Working Paper No. 02/111, Available at SSRN: https://ssrn.com/abstract=879845