APPLICATION OF THE INFLATION CONTROL MODEL IN MAINTAINING FOOD SECURITY DURING THE COVID-19 PANDEMIC IN LANGSA CITY

Ichsan, Ichsan and Usman, Umaruddin and Sari, Cut Putri Mellita and Ramadhan, T. Aulia and Fazil, Muhammad and Ilham, Rico Nur and Khaddafi, Muammar (2022) APPLICATION OF THE INFLATION CONTROL MODEL IN MAINTAINING FOOD SECURITY DURING THE COVID-19 PANDEMIC IN LANGSA CITY. The Seybold Report, 17.I07 (A54). pp. 614-621. ISSN 1533-9211

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Abstract

The economic development of a country generally aims to achieve a high level of economic welfare, which is indicated by the level of full employment. This condition leads to less and less unemployment capacity of production factors in the economy. However, sometimes the use of production factors in the economy has the potential to cause other economic problems, namely inflation. Every region in Indonesia certainly has experienced problems in its economy. Problems in the economy are related to the problem of stabilization, namely how to avoid problems such as inflation, unemployment, and imbalances in the balance of payments. Economic stability is needed in order to keep people's income from being eroded by rising prices (inflation). In this way, society will become more prosperous. Inflation from time to time can undermine the value of money owned by the community. The higher the aggregate price, the lower the value of real money in an economy. This can reduce the welfare of society. Price stability is a barometer of a country's real economic growth. The phenomenon of inflation is an interesting object of study. Various debates or discussion forums around the world, both nationally, regionally, and internationally, especially those organized by the World Bank and the International Monetary Fund (IMF) constantly discuss inflation. Inflation in developing countries that are actively developing, among others, stems from the massive imports of materials for industry that cannot be produced domestically. Political rumors are also not left behind triggering rising inflation. Not to mention the consumerist pattern of society, especially in consumer goods due to the openness of the economy, making the economic performance of the country plagued by inflation even worse. This study aims to formulate a strategy on how to control inflation by referring to the strategic food balance model in tackling inflation. The strategic food balance model has its own output in suppressing inflation, which is much different from other economic systems. The results of this study are expected to suppress inflation by combining monetary and fiscal policies that refer to the strategic food balance model. However, to achieve socio-economic justice norms, efforts need to be made to maintain price stability, through moral improvement strategies, equitable distribution of income and wealth, and the elimination of usury. This type of research is a descriptive quantitative and qualitative descriptive study using a mix method by conducting interviews with the target population, namely 50 respondents, namely 10 government officials from the relevant agencies in Langsa City, as well as 20 small business owners who sell strategic food products and 20 business owners who sell in Langsa City. In this study, a focus group discussion will be held by inviting a number of regional officials from the Langsa City related department, traders of strategic food products and other stakeholders. They are expected to provide input in completing the design of a strategic food balance model and implementing policy recommendations in suppressing inflation in Langsa City.

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