Effect of Monetary Policy on Economic Development

Abstract

The title of this research is "The Impact of Monetary Policy on Economic Growth in Indonesia." The aim is to discuss how inflation, investment and money supply affect economic development in Indonesia. This research utilizes qualitative methods to explain the problem and focus of the research. The information used includes information on inflation, investment, money supply, and economic development in Indonesia. The method of analysis applied is a literature study, where data is collected through literature reviews in libraries, books, written materials, and relevant sources. The results show that inflation in Indonesia is volatile and not always in line with economic development. In order to improve economic stability, Indonesia must continue to maintain appropriate and stable monetary policy, as well as prudent fiscal policy. This is important to face complex economic challenges, such as global commodity price volatility, fluctuations in capital flows, and other factors that affect economic stability. With sustainable and well-planned policies, Indonesia can strengthen economic sectors, control inflation, and maintain exchange rate stability. Thus, the Indonesian economy can continue to grow sustainably.