Work

Monetary Policy Transmission, Exchange Rate Dynamics, and Inflation Control in Emerging Market Economies

Year: 2026

Type: article

Abstract: Controlling inflation remains one of the central challenges for central banks in emerging market and developing economies(EMDEs). While modern monetary policy frameworks rely heavily on benchmark interest rate adjustments to anchorinflation expectations, structural rigidities, currency depreciations, and supply side shocks frequently dampen theeffectiveness of interest rate transmission mechanisms. This paper examines the interaction between monetary policy rate(MPR) adjustments, foreign exchange market dynamics, and headline inflation across emerging markets, with a strategicfocus on sub Saharan African economies. By analyzing the transmission channels namely money supply, credit expansion,and exchange rate pass-through this study outlines an integrated policy framework aimed at improving inflationforecasting, central bank communication, and macroeconomic stabilization.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.24084149

Author: ONWUBOLU, FREDRICK

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W7225650832

FWCI:

Cites:

Cited by:

Related to: