Monetary policy is a fundamental tool for promoting economic stability and growth. In recent years, it has faced a series of global challenges, including trade tensions, geopolitical conflicts such as the Russia-Ukraine war, technological innovation, and the rise of cryptocurrencies. These factors have increased uncertainty and complicated policy decisions for central banks. Additionally, the COVID-19 pandemic and its aftermath have required unprecedented monetary interventions. This paper explores how monetary authorities - particularly the European Central Bank, the U.S. Federal Reserve, and central banks in emerging markets - have adapted their strategies in response. It examines the effectiveness of recent policy shifts and emphasizes the need for coordinated, adaptive approaches that account for inflation control, financial stability, and long-term economic resilience.
Hayk Sargsyan (Sun,) studied this question.