Dear Mr.

lecturer,Please ask for my permission, Luthfi Sungkar from the

Administrative Sciences Study Program.

Please ask for permission to answer the assignment given in session 5.

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?

Answer:

With ongoing global supply chain disruptions and rising energy prices, many
countries are experiencing higher inflation rates. These factors can affect the
effectiveness of monetary policy in controlling inflation by increasing the cost of
production and distribution of goods and services. This can cause overall price
increases in the economy, which in turn can reduce consumer purchasing power and
disrupt economic stability.
To address these challenges, the central bank may need to consider additional
measures such as adjusting monetary policy to alleviate inflationary pressure or
expanding asset purchase programs to stabilize financial markets. In addition, they
can also consider diversifying their investment portfolio to reduce risk exposure
to fluctuations in energy and other commodity prices.
Long-term, there needs to be structural reform in the sectors most exposed to
global supply chain disruptions, such as increasing investment in logistics
infrastructure and diversifying energy sources. This will help reduce market
instability and improve economic resilience to inflation pressure.