The main problem of the country's economy is inflation. Similarly with Indonesia after the Reform Era until now the government has always tried hard to be able to suppress inflation as low as possible. The purpose of this research is to know the solution of expansive monetary policy in suppressing inflation in Indonesia period 2005.07-2016.07. The research methodology uses a quantitative descriptive approach that is a simple regression analysis model to see the causal relationship between expansionary monetary policy and inflation in Indonesia. Based on the calculation results obtained a positive and significant relationship, so in accordance with the theory of monetary policy. Its realization in various cities in Indonesia, the implementation of expansionary monetary policy is done by lowering interest rates has impacted the high productivity of the agricultural sector which in turn will reduce the price of agricultural commodities so that national inflation can also be suppressed.
Volume 11 | 03-Special Issue
Pages: 513-522