Izvestiya of Saratov University.
ISSN 1994-2540 (Print)
ISSN 2542-1956 (Online)


transmission mechanism

Monetary policy transmission issues: Why changing the key interest rate doesn’t always curb inflation?

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.