MONETARY POLICY AND INFLATION: AN EMPIRICAL ANALYSIS OF THE CASE OF UZBEKISTAN
Annotatsiya
The purpose of this study is to analyze the relationship between monetary policy and inflation in Uzbekistan from both theoretical and empirical perspectives. The research employs a quantitative approach, utilizing econometric methods based on quarterly statistical data covering the period 2010–2024. The analysis focuses on the impact of money supply, interest rates, and exchange rates on inflation. The findings indicate that the interest rate, as a key instrument of the monetary transmission mechanism, exerts a significant influence on the level of inflation. In particular, increases in interest rates contribute to reducing inflationary pressures, whereas decreases stimulate economic activity but may heighten inflationary risks. n the period following 2017, exchange rate liberalization and external factors intensified inflationary pressures; however, the Central Bank’s adaptive policy stance played a stabilizing role. In conclusion, enhancing monetary policy and further developing inflation targeting are essential conditions for strengthening macroeconomic stability.