Each of These Factors Affects Economic Growth: Interest Rates Inflation, and Exchange Rates

Abstract

Macroeconomic recovery and the elimination of several bad economic policies, including eradicating corruption in the investment sector, monopoly by some people in the private sector which creates a sense of injustice, unemployment, poverty and income inequality which hampers economic growth.

Finding out how interest rates, inflation, and currency rates affect Indonesia's economic development is the goal of this study. Quantitative research approach that makes use of regression analysis and secondary data. The results of research indicate that interest rates, inflation, and currency rates all significantly influence economic growth, either partially or concurrently. When an adjusted R2 value is high, it indicates that changes in economic growth factors can be explained by the independent variables.