DOI: https://doi.org/10.36719/2706-6185/54/158-161
Shalala Mammadova
Sumgayit State University
https://orcid.org/0009-0004-2514-1958
shalala.mammadova@sdu.edu.az
Regulatory mechanisms of the monetary system in conditions
of high inflationary pressures
Abstract
High inflation is considered one of the major risks to macroeconomic stability in modern economic systems, and under such conditions, regulatory mechanisms of the monetary system gain particular importance. Global economic uncertainties, rising energy and food prices, and increased volatility in financial markets have intensified inflationary pressures. In this context, ensuring price stability through monetary policy instruments has become a key priority for central banks. Interest rate regulation, open market operations, reserve requirements, and communication policy play a significant role in curbing inflation. Empirical studies indicate that effective monetary mechanisms significantly influence the management of inflation expectations and the maintenance of economic stability. Therefore, the study of regulatory mechanisms of the monetary system under high inflationary pressure is of both theoretical and practical relevance.
Keywords: inflation, monetary system, monetary policy, interest rates, central bank, macroeconomic stability, regulatory mechanisms