CENTRAL BANKS' INTEREST RATE POLICY AND THE FIGHT AGAINST INFLATION
Keywords:
Keywords: Central bank, interest rate, inflation, monetary policy, economic stability, Paul Krugman, Taylor Rule, inflation targeting, macroeconomic policy, economic growth, price stability.Abstract
Abstract: This article analyzes the mechanism by which central banks combat
inflation through interest rate policy. In recent years, the surge in global inflation has
prompted many countries to raise interest rates in an effort to ensure price stability.
The article examines the practical outcomes of interest rate policy based on the
experiences of countries such as the United States, the European Union, Turkey, and
Uzbekistan. Additionally, the theoretical foundations of this policy are highlighted
through the views of economists such as Paul Krugman and John Taylor. The author
emphasizes the necessity of integrating interest rate policy with other macroeconomic
measures, arguing that an effective approach to combating inflation requires a
comprehensive set of actions.
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