Review of Literature: The Impact of Inflation on Indonesia's Economic Growth
DOI:
https://doi.org/10.5281/zenodo.11157994Keywords:
Inflation, Economic GrowthAbstract
This article's literature assessment attempts to address theoretical gaps about Indonesian inflation. A phenomenon known as inflation occurs when the cost of goods and services typically rises. The value of a nation's currency can fluctuate due to inflation, as can the supply and demand for products and services. Growth in the economy and inflation are closely associated. An essential measure of a nation's economic progress is its rate of economic growth. Economic growth in the nation is boosted by low and stable inflation. Conversely, unstable or too high inflation will impede the nation's economic expansion. The Indonesian economy is still developing, which reflects the way the inherent instability of the global economic scene is balanced. Indonesia must continue to go in the right direction by accelerating structural change, protecting vulnerable groups, fostering sustainable growth, and maintaining stability. Despite ongoing difficulties, the Indonesian economy is prepared to respond to changes in the world economy by taking sensible and quantifiable action. The Indonesian economy is predicted to be able to withstand the storm of internal and international problems in 2024 and the years that follow, as well as sustain a robust rate of economic growth based on stability, quality, and sustainability, with the right plans and strict yet flexible policies.
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