Abstract This paper examines the effectiveness of central bank strategies in balancing inflation control with economic growth. It synthesizes theoretical frameworks, policy instruments, and empirical evidence from advanced and emerging economies. The study identifies key trade-offs, strategic tools — including interest rate policies, inflation targeting, macro prudential regulation, and forward guidance — and evaluates their impacts on inflation stabilization and growth sustainability. Findings suggest that central banks can maintain price stability without significantly undermining growth by employing flexible frameworks that integrate inflation expectations, macro-financial linkages, and credibility mechanisms.
Anilkumar et al. (Sat,) studied this question.
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