THE EFFECTIVENESS OF TIGHT MONETARY POLICIES IN REDUCING OVERALL INFLATION
Abstract
The rise in global inflation during the post-pandemic period has led to a significant shift in monetary policy orientation, marked by a rapid transition from accommodative measures to restrictive policies. This article analyzes the effectiveness of these policies in reducing inflation, using a qualitative and comparative approach based on secondary data.
The analysis focuses on the major developed economies and the strategies adopted by the Federal Reserve, the European Central Bank, and the Bank of England.
The results highlight a significant correlation between the tightening of monetary conditions and the reduction of inflation during the 2022–2024 period, but also underscore the limitations of these policies in the face of supply shocks. The study shows that the effectiveness of restrictive monetary policies depends on the nature of inflation and the structural characteristics of the economies.
The findings suggest that monetary policy remains an essential tool, but is insufficient in the absence of complementary policies.
The analysis focuses on the major developed economies and the strategies adopted by the Federal Reserve, the European Central Bank, and the Bank of England.
The results highlight a significant correlation between the tightening of monetary conditions and the reduction of inflation during the 2022–2024 period, but also underscore the limitations of these policies in the face of supply shocks. The study shows that the effectiveness of restrictive monetary policies depends on the nature of inflation and the structural characteristics of the economies.
The findings suggest that monetary policy remains an essential tool, but is insufficient in the absence of complementary policies.
Keywords
inflation
monetary policy
interest rates
central banks
global economy
disinflation
AI Summary
JEL Classification
E52, E31, E58, F41 
Topic Graph
This topic graph was generated automatically using AI. Quality may vary.
