Eni Sumarminingsih, Setiawan, Agus Suharsono, Budi Nurani Ruchjana
Economically, Inflation is influenced by Inflation in the previous period and Inflation of other cities. Likewise, with the Money Supply. In addition, Inflation is also related to the Money Supply. The purpose of this study is to examine spatio-temporal relationships of Inflation and Money Supply of four cities in East Java (Surabaya, Malang, Kediri and Jember) simultaneously. A Spatial Vector Autoregressive (SpVAR) model was used to examine the relationship. SpVAR is a model that can be used to find the relationship between several variables at the same location at previous periods, also the relationship between several variables at different locations at previous periods. The results of this study are the the Inflation of Malang is affected by Inflation of three other cities a month earlier. Inflation of Jember is affected by Inflation of Jember a month earlier. Money Supply of Jember, Surabaya and Malang are influenced by the Money Supply one month earlier from the city itself. In addition, Money Supply of Kediri is affected by Inflation of three other cities a month earlier, Money Supply of Kediri and Money Supply of the other three cities a month earlier. © 2018 Author(s).
Department of Statistics, Intitut Teknologi Sepuluh Nopember, Surabaya-East-Java, Indonesia; Department of Statistics, University of Brawijaya, Malang, East Java, Indonesia; Department of Mathematics, Universitas Padjajaran, Bandung, West Java, Indonesia
