TUGAS 2

MATA KULIAH BAHASA INGGRIS NIAGA

Tutor: Rahima Nurviani, M.Ed. (02002332)

Disusun oleh:

Ayu Andika Larasati

051453864

PROGRAM STUDI AKUNTANSI

FAKULTAS EKONOMI DAN BISNIS

UNIVERSITAS TERBUKA BANDUNG

2023.2
PETUNJUK PENGERJAAN:

Untuk menjawab tugas 2, anda bisa membaca dan mempelajari BMP pada modul 3 dan 4 serta
referensi lainnya yang mendukung materi ini. Untuk tugas 1 ini berdasarkan pertemuan tuton
minggu ke 4 dan 5. Tugas 2 dikumpulkan dalam waktu 2 minggu.

SOAL:

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?
 Navigating a Storm: Monetary Policy in the Age of Disruptions

By Ayu Andika Larasati

051453864

The current confluence of global supply chain disruptions and rising energy prices poses
a significant challenge for central banks in their fight against inflation. While monetary policy
remains a crucial tool, its effectiveness is likely to be dampened by these external factors. To
navigate this economic storm, central banks might need to consider a multifaceted approach.

Traditional monetary policy relies on adjusting interest rates. Raising rates discourages
borrowing and investment, thereby dampening economic activity and ultimately lowering
aggregate demand. This, in theory, should reduce inflationary pressures. However, the current
situation presents a unique obstacle. Supply chain disruptions and energy price hikes directly
push production costs higher, leading to "cost-push inflation." Monetary policy has limited
power to address these supply-side constraints. Raising rates in this scenario could lead to a
stagflation environment – a stagnant economy with persistent inflation.

Therefore, central banks might need to explore additional measures alongside monetary
policy. Collaboration with governments on policies that directly address supply chain bottlenecks
and promote alternative energy sources could be crucial. Additionally, ensuring clear
communication and managing inflationary expectations can help prevent a self-fulfilling
prophecy where consumers anticipate future price increases and adjust their spending habits
accordingly, further fueling inflation.

In conclusion, while central banks still hold the reins of monetary policy, the current
economic climate demands a more nuanced approach. By acknowledging the limitations of rate
hikes and exploring complementary measures, central banks can navigate this complex situation
and work towards achieving price stability alongside economic growth.
REFERENCE

Mardiani, S. E. (2023). Bahasa Inggris Niaga Edisi 2. Tangerang Selatan: Universitas Terbuka.
(Module 2, 4, and 5. Page 2. 12 – 2.13; 4.25; 4.34 – 4.36; 5.28)

Libetto, D. (2022, 21st December). Why is Stagflation Bad for the Economy?: A Stagnant
Economy and High Inflation are A Killer Combo. Accessed at 14 May 2024, available at
https://www.investopedia.com/why-is-stagflation-bad-for-the-economy-6892152

Bank for International Settlements. (2023, 25th June). Central Banks Stay The Course as
Inflation Fight Gets Tougher, BIS Says. Accessed at 14 May 2024, available at
https://www.bis.org/press/p230625.htm