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Abstract

This study aims to explain the relationship between economic growth and inflation in 90 Indonesian cities during the period 2018–2022 using the GMM estimator with Windmeijer - Sigmund robust standard errors. The author’s findings reveal that the two-way relationship between the two is that economic growth has a significant positif effect on inflation, while inflation has a negatif but insignificant effect. Through the results of this study, policymakers and stakeholders can consider priority objectives, namely achieving economic growth targets compared to inflation problems during the COVID-19 crisis and economic development during the future economic recovery.

Bahasa Abstract

Penelitian ini bertujuan untuk menjelaskan hubungan antara pertumbuhan ekonomi dan inflasi di 90 kota Indonesia periode 2018–2022 menggunakan estimator GMM with Windmeijer - Sigmund robust standard errors. Temuan penulis mengungkapkan bahwa hubungan dua arah antar-keduanya adalah pertumbuhan ekonomi memiliki pengaruh positif yang signifikan terhadap inflasi, sedangkan inflasi memiliki pengaruh negatif, tetapi tidak signifikan. Melalui hasil penelitian ini, pembuat kebijakan dan pemangku kepentingan dapat mempertimbangkan tujuan prioritas, yaitu pencapaian target pertumbuhan ekonomi dibandingkan permasalahan inflasi di masa krisis pandemi COVID-19, serta perkembangan perekonomian di masa pemulihan ekonomi ke depan.

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