Does the implementation of the Inflation Targeting Framework can be a stimulant for increasing global trade, economic growth, and Human Development Index? Case Study in Indonesia
Radite Teguh Handalani
Human Resource Development Agency of DKI Jakarta Province
Abstract
This study aims to analyze the effectiveness of Inflation Targeting Framework to global trade, economic growth, and human development index. The implementation of the flexible Inflation Targeting Framework policy by Bank Indonesia since 2005 aims to improve macroeconomic stability. It is also conceptually intended as an instrument to respond to changes in economic conditions in a flexible and responsive instrument to minimize the impact of economic crisis. However, in every economic concept and model, it certainly contains weaknesses, so it needs to be anticipated. To be able to conduct a study according to its purpose, this study tries to analyze the determinant of Inflation Targeting Framework to variables of economic growth, global trade, and human development index. It is expected that using data and information as well as the econometric approach of research can find a model that illustrates the interrelationship between variables in the study so that it can be useful as a means of establishing effective economic policies in order to improve the public welfare.
Keywords: Flexible Inflation Targeting Framework, Econometrics, Human Development Index, Global Trade
Topic: Human Capital Development Strategies