THE EFFECTIVENESS OF TIGHT MONETARY POLICIES IN REDUCING OVERALL INFLATION

Marinela Bãrbulescu (), Raquel Mercedes Garcia Revilla () and Bogdan Budicã ()
Additional contact information
Marinela Bãrbulescu: National University of Science and Technology POLITEHNICA Bucharest, Pite?ti University Centre
Raquel Mercedes Garcia Revilla: UDIMA Madrid Open University, Faculty of Economics and Business Sciences, Spain
Bogdan Budicã: University of Craiova, Faculty of Economics and Business Administration,

Scientific Bulletin - Economic Sciences, 2025, vol. 24, issue 2, 41-48

Abstract: The rise in global inflation during the post-pandemic period has led to a significant shift in monetary policy orientation, marked by a rapid transition from accommodative measures to restrictive policies. This article analyzes the effectiveness of these policies in reducing inflation, using a qualitative and comparative approach based on secondary data. The analysis focuses on the major developed economies and the strategies adopted by the Federal Reserve, the European Central Bank, and the Bank of England. The results highlight a significant correlation between the tightening of monetary conditions and the reduction of inflation during the 2022–2024 period, but also underscore the limitations of these policies in the face of supply shocks. The study shows that the effectiveness of restrictive monetary policies depends on the nature of inflation and the structural characteristics of the economies. The findings suggest that monetary policy remains an essential tool, but is insufficient in the absence of complementary policies.

Keywords: inflation; monetary policy; interest rates; central banks; global economy; disinflation (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 F41 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://economic.upit.ro/RePEc/pdf/2025_2_4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pts:journl:y:2025:i::p1:41-48

Access Statistics for this article

Scientific Bulletin - Economic Sciences is currently edited by Alina Hagiu

More articles in Scientific Bulletin - Economic Sciences from University of Pitesti Contact information at EDIRC.
Bibliographic data for series maintained by Alina Hagiu ().