Monetary policy: current state review and development prospects
Year: 2024
Type: article
Abstract: Monetary policy is one of the key tools of economic management, influencing inflation levels, employment, interest rates, and other aspects of macroeconomic stability. In the current context of globalization and financial market instability, monetary policy gains particular significance. Monetary theory in economics has developed from various schools of thought rather than a single unified model. Each of these schools emphasizes different forces driving inflation and recommends specific policy responses. Different times have posed different challenges, each requiring its own policy approach. This article reviews the current state of monetary policy and examines its development prospects. Monetary policy refers to the financial policies that regulate all areas of the economy where money is used. This is a generalization of numerous definitions of the concept. Monetary policy is part of economic policy aimed at achieving employment and price stability, economic growth, and balance of external payments through the control of the monetary system. It seeks to influence spending flows. The primary role of monetary policy is to strengthen the purchasing power of the national currency, prevent inflation, and achieve a stable exchange rate. Monetary policy is a set of measures taken by the central bank aimed at regulating the money supply in the economy. The development and implementation of monetary policy is a central function of the central bank in any state. The strategic goal of the central bank's monetary policy should align with the ultimate goal of the state's economic policy- to achieve a level of economic growth that ensures high employment, price stability, and stability of the currency's external value. The central bank must facilitate the achievement of this goals.
Source: Innovation and Sustainability
Authors: Mykhailo KOLIADKA, Oksana FEIER
Institution: Mukachevo State University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405081626