The Influence of Fiscal Policy Credibility on Inflation Stability in Indonesia

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Inflation stability is influenced positively by investment and the value exchange rate, despite other factors showing negative impact.
Confirmatory Factor Analysis indicated that only investments and exchange rates were significant contributors to inflation changes.
Expenditure, taxes, interest rates, and external debt were found to have a negligible or negative effect on inflation levels in Indonesia.
The findings emphasize the importance of controlling inflation to safeguard economic and social conditions in Indonesia.

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Analysis connects fiscal policy elements like investment and exchange rates to inflation trends in Indonesia, suggesting significant influences.

Gulo et al. (2025) studied this question.

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Analysis connects fiscal policy elements like investment and exchange rates to inflation trends in Indonesia, suggesting significant influences.