Analysis of Macroeconomic Variables Affecting Inflation and Exchange Rates

This study aims to examine the movement of macroeconomic variables, especially inflation and exchange rates. Inflation affects rate through Law One Price Purchasing Power Parity, while Exchange Rate Pass-Through Effect. also effect other factors on The variables studied suspected influencing are interest rates, money supply, exports, imports, government spending, unemployment, While difference in rates between domestic foreign trade balance, public debt, MYR/USD, THB/USD, PHP/USD, SGD/USD. research period is from 2004-2017. method used Two-Staged Least Square model. results found that there was no simultaneity after adding control variable. Significant partially affect rupiah rate. Meanwhile, supply have significant effect. In terms IDR rate, Indonesia US, MYR, THB, SGD. PHP IDR.