A MODIFIED MODEL OF THE RELATIONSHIP BETWEEN INFLATION AND UNEMPLOYMENT USING DELAY DIFFERENTIAL EQUATIONS
The macroeconomic performance of a country is based on two related macroeconomic components, namely the rate of inflation and unemployment. These two components have a significant relationship because changes in the inflation rate and/or unemployment are able to pose financial risks to society, b...
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| Main Author: | |
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/83997 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The macroeconomic performance of a country is based on two related macroeconomic
components, namely the rate of inflation and unemployment. These two components have
a significant relationship because changes in the inflation rate and/or unemployment
are able to pose financial risks to society, both during the event and afterward. Therefore,
macroeconomic performance and past events are important elements to consider
in efforts to mitigate financial uncertainty. The relationship between macroeconomic
performance and past events is expressed in an economic model modified by delay differential
equations. This model is divided into non-systemic and systemic economic
models, each with specific parameters. The estimation of relevant parameters from the
model can be used to forecast future inflation rates. By selecting an appropriate delay
time, it is hoped that the inflation rate forecasts will help investigate potential financial
risks and subsequently prevent financial uncertainty in society in the future. |
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