Design of the Monetary Policy Transmission Mechanism: Current Status and Prospects for Change

The article is devoted to the research of the theoretical and methodological principles of developing the transmission mechanism of monetary regulation. The aim of the article is to highlight the relevance of approaches to implementing the design of the transmission mechanism of monetary policy, as well as factors that influence its formation, taking into account the cyclical nature of the economy. The modern transmission mechanism of monetary policy, after the transition from monetarism to neoclassical views and neo-Keynesianism, is actually implemented through a change in the interest rate, which is a key tool for managing the economy. The entities of the interest rate transmission mechanism include: the central bank, which forms monetary policy by setting the key interest rate; the financial sector, which includes commercial banks and non-bank financial institutions that transmit changes in interest rates to economic agents; and the real sector of the economy – legal entities and households that respond to changes in the cost of loans, savings and investments. This mechanism is a defining element of monetary policy, as it determines the effectiveness of the transfer of the central bank's regulatory influence to the real sector of the economy. The conducted research allowed us to substantiate the variability of the theoretical approach to developing the design of the transmission mechanism, expanding the influence of its external channel on changing national monetary policy by the factor of possible external shocks. The results of the research on the variability of the transmission mechanism design can be used to improve the monetary policy of the national regulator by implementing adaptive measures to possible external shocks when forecasting inflation expectations in the medium and long term. Based on the results of the research a conclusion was drawn regarding the improvement of the design of the transmission mechanism of the national regulator's monetary policy, in order to enhance the efficiency of its individual channels and policy instruments to ensure the effectiveness of its priority direction – achieving and maintaining price stability and economic development in general.