Monetary Policy Analysis In Influencing Price Stability In Indonesia: Pre-Pandemic And Post-Pandemic Case Studies Viewed From The Perspective Of Islamic Economics

Abstract

This study aims to analyze the influence of monetary policy represented by interest rates, money supply and exchange rates on price stability in Indonesia pre-pandemic and post-pandemic covid-19. Price stability in this study was measured using core inflation which is a condition of maintaining price levels in the economy so as not to experience excessive fluctuations in the long term. The method used is a quantitative approach with time series data with autoregressive Distributed Lag (ARDL) analysis to measure the effect of monetary policy on price stability. In addition, descriptive analysis was used to analyze differences in monetary policy conditions and pre-and post-pandemic price stability. In the Islamic economic perspective, stability is seen as part of the goal of preserving the benefits and avoiding excessive price injustice, so that monetary policy applied can support the creation of justice and balance.