The Effectiveness of Inflation Targeting in Mitigating The Impact of World Oil Prices and Exchange Rates on Inflation in Indonesia: an ARDL Approach
Although Bank Indonesia has embraced Inflation Targeting (IT) since 2005, Indonesia's Inflation remains subject to exogenous shocks, particularly oil price volatility and exchange rate instability. This study considers the role of IT in (i) mitigating transmission of external shocks to domestic Inflation, and (ii) what...