The Role of Monetary Policy in Addressing Economic and Financial Challenges: Effective Strategies for Managing Inflation and Growth

Ahmad Wahyudin

Authors

Ahmad Wahyudin Universitas Nazhatut Tullab Al Muafi Sampang Author

Abstract

This research aims to analyze the crucial role of monetary policy in addressing economic and financial challenges, with a focus on effective strategies for managing inflation and promoting balanced economic growth. Through a quantitative approach, macroeconomic data is analyzed using regression analysis and econometric models to evaluate the relationship between variables such as inflation, economic growth, interest rates, and monetary policy. The analysis results indicate that monetary policy, particularly in terms of adjusting interest rates and regulating the money supply, has a significant impact on controlling the inflation rate. Additionally, monetary policies aligned with the goals of sustainable economic growth are key to creating conducive conditions for investment and consumption. The implications of this research provide valuable insights for policymakers in Indonesia in formulating responsive and effective monetary policies, considering the unique domestic economic context. This research also lays the groundwork for further studies on the effects of monetary policy on specific economic sectors and the evaluation of the impact of new monetary policy innovations. Thus, this research makes a significant contribution to our understanding of how monetary policy can be an effective instrument in achieving sustainable macroeconomic stability and inclusive economic growth.

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