Var Analysis to Examine the Relationship Between ISSI and ISSI in the Previous Period, Inflation, and the Rupiah-US Dollar Exchange Rate in Indonesia

Abstract

This research aims to determine the relationship between ISSI and previous period ISSI, inflation and exchange rates (exchange rates). Judging from the ISSI movement which has experienced significant developments, of course this has a relationship with several macroeconomic variables such as the previous period's ISSI, inflation and exchange rates. The analysis method for this research uses the VAR method. Based on the results obtained, the Indonesian Sharia Stock Index Variable for the previous period had a positive influence on the Indonesian Sharia Stock Index, then the Inflation Variable had a negative influence on the Indonesian Sharia Stock Index, and the BI Rate Variable had a negative influence on the Indonesian Sharia Stock Index.