Pengaruh Defisit Anggaran Terhadap Inflasi di Indonesia Tahun 2001.Q1-2013.Q4 : Pendekatan Fiscal Theory of Price Level

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.