monetary policy

Introduction. The key rate is the main monetary policy instrument through which the central bank influences inflation. However, in practice, a situation is often observed when monetary policy tightening and a significant increase in the key rate do not lead to a rapid and adequate reduction in inflation. This fact indicates the presence of serious problems in the transmission mechanism, which requires an in-depth analysis of this phenomenon’s causes. Theoretical analysis.

Introduction. The shocks that occurred in 2014 in the country’s financial markets, which gave rise to the current crisis, led to an understanding of the decisive role of financial sector behavior in determining economic dynamics. Economic policy, long held in our country, only nominally having the right strategic goals, caused stagnation at the expense of the means by which it was implemented.