Description

Correlation about Indonesia Inflation and Unemployment Period: Year 1985 to 2020 

ESSEX BUSINESS SCHOOL

BE937 Finance Research Project

Name

Student Number

June 2023

Word count excluding references: 5058

Abstract

The most pressing problems in the majority of countries are inflation and unemployment. Various economic activities, such as saving, poverty, investments, exports, and overall economic growth, are impacted by these two factors. A nation should keep its inflation and unemployment rates as low as possible to maintain economic stability. The goal of this study is to examine how these two factors interact and how that interaction affects a nation’s economic activities. The study made use of secondary data that was acquired from the Indonesian Bureau of Statistics and put through a series of correlational analyses utilizing the E-views Statistical Application. The relationship between Indonesia’s inflation and unemployment rates indicates that from 1985 to 1997, Indonesia had high levels of inflation relative to unemployment, with rates varying between single and double digits. The following years. Indonesia’s unemployment rates varied during this time, albeit with less turbulence, ranging from about 4% to 6%. Indonesia saw a spike in inflation rates in the middle of the 1990s. The pattern additionally reveals a significant rise in inflation between 1997 and 1998. The research determines that the relationship between inflation and unemployment is not always inverse. Studies that capture the inflation- unemployment association should consider the impacts of other factors which could influence the association of these two factors

Table of Contents

Abstract 2

1 CHAPTER ONE: INTRODUCTION 5

1.1 Background and Study justification 5

1.2 Research Objectives 5

1.3 Scope of the research 5

1.4 Expected outcome and significance of the research 6

1.5 Summary and conclusion 6

2 CHAPTER 2: LITERATURE REVIEW 7

2.1 Introduction 7

2.1.1 Identification of literature gap 7

2.2 Review of related studies 7

2.2.1 Relationship between Inflation and Unemployment 7

2.2.2 Relationship between Inflation and Money Supply 8

3 CHAPTER THREE: METHODOLOGY 9

3.1 Introduction 9

3.2 Data Collection 9

3.3 Data analysis 9

4 CHAPTER THREE: RESULTS AND ANALYSIS 11

4.1 Introduction 11

4.2 Results 11

4.3 Summary of findings 14

4.4 Analysis Discussion 15

5 CHAPTER FOUR: CONCLUSION 20

5.1 Conclusion 20

5.2 Study Limitation 21

5.3 Recommendation 21

• CHAPTER ONE: INTRODUCTION

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