| dc.description.abstract | Fiscal policy that is used to regulate the income and expenditure
among nations through the budget deficit. Expansion of fiscal policy is
characterized by greater expenditures than revenues have an
important role in controlling prices (inflation) in Indonesia. Generally,
inflation is influenced by the amount of money circulating in the
quantity theory of money, but this theory opposition from Fiscal Theory
of the Price Level which describes fiscal policy plays an important role in
controlling prices (inflation). As for the differences that occur between
the Keynesians, the neoclassical and the Ricardian the debate about
the influence of the budget deficit on the economy. There is also a
difference in the results of research in Indonesia and in various
countries on the effect of budget deficits on inflation. Therefore, this
study will discuss the budget defist influence on inflation in Indonesia in
2001.Q1-2013.Q4 year observation period. With FTPL approach and
analysis and quantitative deskreptif using Ordinary Least Square (OLS)
will try to answer these problems. Based on these results it can be
concluded that the budget deficit significant negative effect on
inflation. So also with the exchange rate and GDP are arranged in the
model, the results of which significantly affects the amount of inflation
in Indonesia. | en_US |
