Monetary regulation and its role in the state’s economic growth

Abstract

The article provides a comparative analysis of monetary regulation models and explores their impact on economic growth. The aim of the paper is to study models of monetary regulation and their impact on economic growth. The authors claim that monetary regulation of any country in the world should be aimed at ensuring economic growth. The study shows that the rapid development of monetary policy and economic growth theories is marked by certain contradictions, uncertainty and cross flows. Based on the analysis of the views of researchers on the impact of monetary regulation on economic growth, the authors conclude that concepts are divided according to those that characterize weak relations between these phenomena, and those that prove close correlation. The authors state that in Ukraine, in conditions of using a monetary design based on the inflation targeting regime and taking into account the importance of increasing the efficiency of using main instruments of monetary regulation, it is necessary, first of all, to ensure the consistency of monetary and fiscal policies. The coordination of monetary and fiscal policies should consist of developing and implementing them in such a way that they do not contradict each other and together contribute to the achievement of the common goals of economic policy, such as sustainable economic growth and low unemployment in terms of long-term price and external stabilities. That is, the main problem of the significant influence of monetary regulation on economic growth in the country lies in restoring the effectiveness of the channels of the transmission mechanism of monetary policy, which depends on the choice of monetary design.