TUGAS 2 Bahasa Inggris Niaga Ridwan Nurhakim

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TUGAS 2 TUTORIAL SESI 5

Ridwan Nurhakim 049383991

Bahasa Inggris Niaga ADBI 4201

Tutor: Zulkifli, S.Pd. M.Si 02000035

Prodi S1 Manajemen

Fakultas Ekonomi

UPBJ Jakarta
Please choose one of the topics below. Then, write an essay consisting of 3 paragraphs.
Elaborate your own opinion with the references related to the topic that you choose.

1. With the ongoing global supply chain disruptions and rising energy prices, many countries are
experiencing higher inflation rates. How do you think these factors will impact the effectiveness
of monetary policy in controlling inflation, and what additional measures might central banks
need to consider?

2. Given the increasing use of digital currencies and the potential for them to influence
traditional monetary systems, how do you think the rise of cryptocurrencies might affect central
banks' ability to manage inflation and ensure price stability in the economy?

Answer :

The current global supply chain disruptions and escalating energy prices pose significant
challenges to central banks' efforts in controlling inflation. These factors contribute to cost-push
inflation, wherein the increased production costs are passed on to consumers, leading to higher
prices for goods and services. In such a scenario, traditional monetary policy tools, such as
adjusting interest rates, may have limited effectiveness. Higher interest rates could potentially
dampen economic activity, but they might not directly address the root causes of inflation driven
by disruptions in the supply chain and elevated energy costs.

To mitigate the impact of supply chain disruptions and energy price spikes on inflation, central
banks may need to consider a more nuanced approach to monetary policy. One possible measure
is the use of forward guidance to manage inflation expectations. By communicating clear and
transparent messages about their policy intentions, central banks can influence consumer and
business behavior, helping to anchor inflation expectations and prevent second-round effects.
Additionally, central banks may explore targeted interventions to address specific supply
bottlenecks, such as providing liquidity support to affected industries or collaborating with fiscal
authorities to implement supply-side measures aimed at boosting production capacity.
Furthermore, central banks could adopt a more flexible inflation targeting framework that takes
into account temporary supply-side shocks. Instead of strictly adhering to predetermined
inflation targets, central banks could allow for temporary deviations from the target while
focusing on maintaining long-term price stability. This approach would acknowledge the
transitory nature of supply disruptions and energy price fluctuations, avoiding overly aggressive
monetary tightening that could stifle economic recovery. Overall, in the face of complex
inflationary pressures stemming from global supply chain disruptions and energy price volatility,
central banks must adapt their policy strategies to ensure the effectiveness of monetary policy in
maintaining price stability while supporting sustainable economic growth.

reference source :

Mardiani, Siti Era. 2022. Bahasa Inggris Niaga Edisi 2 ADBI 4201. Tanggerang Selatan.
Universitas Terbuka

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