A time-varying of property residential price in Indonesia: a VAR approach

The crisis of 2008 started with asset price bubbles which spread to other sectors, thus driving a recession. Turmoil in the housing sector can directly harm domestic economy and financial stability. research aims analyze macroeconomic variables that affect prices Indonesia how inflation-targeting framework affects prices. This study contributes current research, such as early warning system for bubbles. Inflation Targeting Framework (ITF) policy used by Central Bank has shown its effectiveness property sector. It be seen negative response is from when there are inflationary shocks. interest rates fluctuations stronger than rates. indicates rate stimulus more reactive changes an accommodation volatility. GDP money supply will respond negatively fluctuations, lead because responds negatively. strengthening fiscal monetary soften volatility