Monetary Policy and its Impact on Inflation and Economic Growth

Gabriel Aires(Bordeaux School of Economics, UMR CNRS6060, University of Bordeaux, 33000 Bordeaux, France)
Susan Jaud(Bordeaux School of Economics, UMR CNRS6060, University of Bordeaux, 33000 Bordeaux, France)

Abstract

This article examines the relationship between monetary policy, inflation, and economic growth. It delves into the mechanisms through which central banks use monetary instruments to influence inflation and the broader economy. The study explores the theoretical frameworks and empirical evidence on how monetary policy affects inflation and economic growth, discussing both the short-term and long-term impacts. The article also highlights the challenges and trade-offs that policymakers face in balancing inflation control and economic growth objectives.

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DOI: http://dx.doi.org/10.26549/jesr.v6i2.15948