POLITICAL ISSUE, INFLATION, INTEREST RATE, EXCHANGE RATE, IDX COMPOSITE ON ECONOMIC GROWTH IN ERA TECHNOLOGY

Abstract

Health, safety and environmental regulations can have costs that can slow down GDP growth. Important
factors in the development economy analyzed are increased investment, advanced technology, increased international
trade, controlled inflation and low interest rates. The purpose of this study was to analyze the effect of inflation, interest
rates, stock price index, and presidential election year on economic growth. The quantitative method with regression
analysis is used to determine how the influence of the inflation predictor variable, the stock prices index and the dummy
variable of the presidential election year on GDP. The results of the regression analysis state that inflation has a
significant effect on GDP during the presidential election and when there is no presidential election. This suggests that the
monetary authority must control inflation to stabilize economic activity. This reinforces the fact that the economy as a
whole is supported by private consumption. Overall, it can be concluded that during the last 20 years in Indonesia,
monetary policy in controlling inflation has had a significant effect on economic activity compared to fiscal policy.