Journal of Management, Economic, and Accounting
Vol. 5 No. 2 (2026): April

The Effectiveness of Monetary Policy in Driving Economic Growth

Bangun, Agika Ayla Sari Dewi (Unknown)
Pane, Sanusi Gazali (Unknown)
Dakhi, Teresia (Unknown)
Nehe, Dermawan Syah Putra (Unknown)
Zai, Regina Roswita (Unknown)



Article Info

Publish Date
30 Apr 2026

Abstract

This study aims to analyze the effectiveness of monetary policy in stimulating economic growth. Monetary policy, through instruments such as interest rates, money supply, and banking credit, plays a strategic role in influencing real economic activities. The research method employs a conceptual approach and a literature review, examining monetary economic theories and relevant previous research findings from both national and international literature. The analysis is conducted by tracing the transmission mechanisms of monetary policy on economic growth through interest rate channels, investment, consumption, and exchange rate stability. The expected results of this study indicate that monetary policy managed credibly and responsively to macroeconomic conditions is capable of fostering sustainable economic growth. A reduction in interest rates is expected to increase investment and consumption, while the control of the money supply can maintain inflation stability, thereby creating a conducive economic climate for growth. This research is expected to provide a theoretical contribution to enriching the study of monetary economics and serve as a reference for formulating effective monetary policies to support economic growth.

Copyrights © 2026






Journal Info

Abbrev

JMEA

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Journal of Management, Economic, and Accounting is a peer-reviewed journal. JMEA invites academics and researchers who do original research in the fields of economics, management, and accounting, including but not limited to: Management Science Marketing Financial management Human Resource ...