The Impact of the Budget Deficit on the Effectiveness of Monetary Policy
Keywords:
State budget, monetary policy, inflation, GDP, public debt.Abstract
The interaction between fiscal and monetary policy is a central issue in both macroeconomic theory and policy. A budget deficit, especially when persistent, can affect the effectiveness of central bank instruments through several channels: pressure on interest rates, debt “monetization,” and impacts on the availability of financial resources within the economy. This article aims to theoretically and empirically assess how and to what extent the budget deficit influences the effectiveness of monetary policy, to determine how these effects depend on institutional characteristics, and to provide practical recommendations for coordinating fiscal and monetary policies.
References
1.
Khramchenko, A.A., Baloyan, S.S., Khastyan, A.M. The State Budget as a Key Regulator of Socio-Economic Processes // Vestnik of the Academy of Knowledge.2022.No.1(48). URL: https://cyberleninka.ru/article/n/byudzhet-gosudarstva-kak-vazhneyshiy-regulyator-sotsialno-ekonomicheskih-protsessov
2.
Manzhula, T.Yu. The Role of the State Budget in the Socio-Economic Development of the State // Vestnik of Eurasian Science. 2020. No. 5. URL: https://cyberleninka.ru/article/n/rol-gosudarstvennogo-byudzheta-v-sotsialno-ekonomicheskom-razvitii-gosudarstva
3.
Sirojiddinova, Z.Kh. Public Finance System: Management Reform and Improvement Directions in the Republic of Uzbekistan // Financial Journal. 2023.No.3. URL: https://cyberleninka.ru/article/n/sistema-gosudarstvennyh-finansov-reforma-upravleniya-napravleniya-sovershenstvovaniya-v-respublike-uzbekistan
4.
Khazratkulova, L.N. Problems of Balancing the State Budget of the Republic of Uzbekistan at the Present Stage // Problems of Modern Economy. St. Petersburg, No. 4, 2022 (VAK RF). Pp. 144–148. http://www.m-economy.ru/art.php?nArtId=7471
5.
www.cbu.uz
6.
www.tradingeconomics.com
7.
www.spglobal.com
