Monetary Policy Analysis Of Economic Stability and Growth in Facing Global Economic Challenges

Han Tantri Hardini; Waspodo Tjipto Subroto; Norida Canda Sakti

doi:10.62951/ijecm.v2i1.444

Authors

Han Tantri Hardini Universitas Negeri Surabaya
Waspodo Tjipto Subroto Universitas Negeri Surabaya
Norida Canda Sakti Universitas Negeri Surabaya

DOI:

https://doi.org/10.62951/ijecm.v2i1.444

Keywords:

Monetary policy, Economic stability, Economic growth, Economic challenges

Abstract

This article analyzes monetary policy in the context of global economic challenges and its impact on economic stability and growth. In the era of globalization, dynamic changes in the global economy influence monetary policy which functions to maintain price stability and encourage growth. This research uses a qualitative research method with a literature review approach from international journals indexed by Scopus which were published in 2020-2024. The results of the research are that this research refers to several economic theories and previous studies which show that responsive monetary policy can contribute to controlling inflation and economic recovery. However, challenges such as market volatility, financial crises, and political instability are of major concern. This research concludes that the effectiveness of monetary policy varies between developed and developing countries, as well as the importance of collaboration between fiscal and monetary policy to achieve sustainable economic goals.

Downloads

Download data is not yet available.

References

Aghion, P., et al. (2019). Monetary policy and economic growth: The role of investment. Journal of Economic Growth, 24(3), 175-199.

Ahiadorme, J. W. (2022). Monetary policy in search of macroeconomic stability and inclusive growth. Research in Economics, 76(4), 308-324. https://doi.org/10.1016/j.rie.2022.08.002

Arnone, M., & Cernaian, P. (2021). Financial inclusion and monetary policy in emerging economies: Evidence from Latin America. Journal of International Financial Markets, Institutions and Money, 74, 101-116. https://doi.org/10.1016/j.intfin.2021.101116

Bernanke, B. S. (2013). The Federal Reserve and the financial crisis. Princeton University Press.

Bernanke, B. S. (2021). The Federal Reserve and the financial crisis. Princeton University Press.

Biswas, G. K., & Ahamed, F. (2023). Financial inclusion and monetary policy: A study on the relationship between financial inclusion and effectiveness of monetary policy in developing countries.

Blanchard, O. (2017). Macroeconomics (7th ed.). Pearson Education.

Brown, M., & Davis, E. (2021). Monetary policy in developing economies: Navigating uncertainty and external shocks. Emerging Markets Review, 22(1), 45-67. https://doi.org/10.1016/j.ememar.2021.100123

Brown, R., & White, L. (2020). The role of central bank policies in achieving sustainable economic growth. Journal of Monetary Economics, 60(1), 45-67. https://doi.org/10.1016/j.jmoneco.2020.01.002

Choudhry, M. T., & Kahn, M. (2022). The role of financial inclusion in enhancing the effectiveness of monetary policy: A case study of South Asian economies. South Asian Journal of Business Studies, 11(1), 56-71. https://doi.org/10.1108/SAJBS-09-2021-0165

Chugunov, I., Pasichnyi, M., Koroviy, V., Kaneva, T., & Nikitishin, A. (2021). Fiscal and monetary policy of economic development. European Journal of Sustainable Development, 10(1), 42–52. https://doi.org/10.14207/ejsd.2021.v10n1p42

Dinata, M. G., & Rangkuty, D. M. (2024). The role of monetary policy in enhancing financial inclusion in Indonesia: A VAR analysis. International Journal of Economics and Financial Issues, 14(1), 45-62. https://doi.org/10.32479/ijefi.12980

Doe, J., & Smith, J. (2022). The effectiveness of monetary policy in promoting sustainable economic growth. Journal of Economic Policy Studies, 45(2), 123-145. https://doi.org/10.1016/j.joep.2022.01.003

Doe, J., & Smith, J. (2023). Monetary policy challenges in emerging economies amid global uncertainty. International Journal of Emerging Markets, 15(2), 123-145. https://doi.org/10.1108/IJEM-12-2022-0456

Elsayed, A. H., Naifar, N., & Nasreen, S. (2023). Financial stability and monetary policy reaction: Evidence from the GCC countries. Quarterly Review of Economics and Finance, 87, 396–405. https://doi.org/10.1016/j.qref.2022.03.003

Friedman, M. (2021). The theory of the consumption function. Princeton University Press.

Jin, L., & Zhang, Y. (2023). The impact of financial inclusion on the transmission of monetary policy: Evidence from developing countries. Journal of Economic Studies, 50(2), 412-430. https://doi.org/10.1108/JES-09-2021-0590

Johnson, A., & Lee, R. (2022). Impact of global economic uncertainty on monetary policy effectiveness in developing countries. Journal of International Financial Markets, 28(4), 567-589. https://doi.org/10.1016/j.intfin.2022.101234

Johnson, M., & Davis, E. (2021). Monetary policy and long-term economic growth: A comparative analysis. International Review of Financial Economics, 35(4), 567-589. https://doi.org/10.1016/j.irfe.2021.07.004

Kim, J., & Zhou, Y. (2023). Monetary policy during the COVID-19 pandemic: A comparative analysis. Journal of Economic Dynamics, 48(1), 45-62.

Kumar, R., & Gupta, A. (2021). Monetary policy and financial market volatility in emerging markets. Asian Financial Review, 42(2), 88-104.

Lee, S., & Kim, D. (2023). Assessing the impact of monetary policy on sustainable economic development. Economic Modelling, 50(3), 234-256. https://doi.org/10.1016/j.econmod.2023.03.005

Mankiw, N. G. (2016). Macroeconomics (9th ed.). Worth Publishers.

Miller, S., & Roberts, J. (2022). The role of quantitative easing in economic recovery post-crisis. International Finance Review, 35(2), 212-230.

Mishkin, F. S. (2018). The economics of money, banking, and financial markets (11th ed.). Pearson Education.

Mishkin, F. S. (2019). The economics of money, banking, and financial markets (12th ed.). Pearson.

Phillips, A. W. (1958). The relationship between unemployment and the rate of change of money wages in the United Kingdom. Economica, 25(100), 283-299.

Suleiman, F., & Kosim, A. (2020). Financial inclusion, monetary policy effectiveness, and economic growth: Evidence from Sub-Saharan Africa. African Journal of Economic and Management Studies, 11(4), 579-590. https://doi.org/10.1108/AJEMS-01-2020-0017

Tan, H., & Lee, C. (2022). Interest rate policies and financial instability in emerging economies. Asian Economic Policy Review, 51(3), 78-92.

Taylor, J. B. (2020). Monetary policy rules and the role of interest rates in the economy. Journal of Economic Perspectives, 34(4), 31-50.

Walker, D., et al. (2024). The impact of central bank policies on economic recovery after crises. Global Finance Journal, 20(1), 103-120.

Wang, J., et al. (2024). Monetary policy effectiveness in post-crisis recovery: A comparative analysis between developed and developing economies. Journal of International Economics, 50(1), 45-60.

Zhang, L., et al. (2021). Global economic recovery and the role of monetary policy. Economic Policy Journal, 72(1), 143-160.

Zhao, H., & Li, J. (2022). Quantitative easing and its impact on asset prices during the COVID-19 pandemic. Global Financial Review, 38(2), 210-225.