Forecasting performance of the P-star model: The case of Indonesia
This paper investigated the linkage between money supply and inflation in Indonesia by adopting the PStar model. Both the simple-sum and Divisia monetary aggregates were employed to compare their relative performance in terms of inflation forecasting. The empirical findings revealed that the P-Star...
| Main Authors: | , , , |
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| Format: | Article |
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International Academy of Business and Economics
2015
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| Online Access: | http://ir.unimas.my/id/eprint/12711/ |
| _version_ | 1848837257463595008 |
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| author | Tang, M.M.-J. Puah, Chin-Hong Affendy Arip, M. Dayang Affizzah, Awang Marikan |
| author_facet | Tang, M.M.-J. Puah, Chin-Hong Affendy Arip, M. Dayang Affizzah, Awang Marikan |
| author_sort | Tang, M.M.-J. |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This paper investigated the linkage between money supply and inflation in Indonesia by adopting the PStar model. Both the simple-sum and Divisia monetary aggregates were employed to compare their relative performance in terms of inflation forecasting. The empirical findings revealed that the P-Star model performed well in tracking inflation in Indonesia. In addition, the Divisia M2 model returned better results with greater prediction information on inflationary movement in Indonesia. |
| first_indexed | 2025-11-15T06:36:47Z |
| format | Article |
| id | unimas-12711 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| last_indexed | 2025-11-15T06:36:47Z |
| publishDate | 2015 |
| publisher | International Academy of Business and Economics |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-127112023-03-23T07:19:26Z http://ir.unimas.my/id/eprint/12711/ Forecasting performance of the P-star model: The case of Indonesia Tang, M.M.-J. Puah, Chin-Hong Affendy Arip, M. Dayang Affizzah, Awang Marikan HB Economic Theory This paper investigated the linkage between money supply and inflation in Indonesia by adopting the PStar model. Both the simple-sum and Divisia monetary aggregates were employed to compare their relative performance in terms of inflation forecasting. The empirical findings revealed that the P-Star model performed well in tracking inflation in Indonesia. In addition, the Divisia M2 model returned better results with greater prediction information on inflationary movement in Indonesia. International Academy of Business and Economics 2015 Article PeerReviewed Tang, M.M.-J. and Puah, Chin-Hong and Affendy Arip, M. and Dayang Affizzah, Awang Marikan (2015) Forecasting performance of the P-star model: The case of Indonesia. Journal of International Business and Economics, 15 (2). pp. 7-12. ISSN 1544-8037 https://www.scopus.com/record/display.uri?eid=2-s2.0-84943525778&origin=inward&txGid=0 |
| spellingShingle | HB Economic Theory Tang, M.M.-J. Puah, Chin-Hong Affendy Arip, M. Dayang Affizzah, Awang Marikan Forecasting performance of the P-star model: The case of Indonesia |
| title | Forecasting performance of the P-star model: The case of Indonesia |
| title_full | Forecasting performance of the P-star model: The case of Indonesia |
| title_fullStr | Forecasting performance of the P-star model: The case of Indonesia |
| title_full_unstemmed | Forecasting performance of the P-star model: The case of Indonesia |
| title_short | Forecasting performance of the P-star model: The case of Indonesia |
| title_sort | forecasting performance of the p-star model: the case of indonesia |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/12711/ http://ir.unimas.my/id/eprint/12711/ |