Asymmetric effects of inflation rate changes on the stock market index: The case of Indonesia

Over the years, macroeconomic fundamentals and stock market were found to have symmetrical relationship in numerous scientific investigations. These provide crucial knowledge regarding price indices by providing forecasts for future information on current status of economy. This study employs a Nonlinear Autoregressive Distributed Lags (NARDL) model fill research gap estimating asymmetric between inflation from 1996 2020. The suggests that has long-run short-run affect price, while both positive negative changes harm prices. As it reveals, impact market, this can assist investors businesses making well-informed decisions result more efficient allocation resources, ultimately benefiting Additionally, policymakers utilize these findings design effective strategies managing inflation, stabilizing prices, promoting economic growth, ensuring financial stability.