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Goce Delcev University, Shtip, North Macedonia
Faculty of Economics, Goce Delcev University, Stip, North Macedonia
Monetary policy, together with fiscal policy, are key policies in stabilizing economies from shocks that come from offers and demands. The monetary policy, with the application of its instruments and channels of transmission, among other things, aims to maintain a stable level of prices, that is, a low level of inflation by permanently creating targeted measures and establishing a target corridor in which inflation should move towards.The emergence of the Corona crisis in 2020 indirectly through the governments' health care measures, which included the ban on movement, implied the disruption of global supply chains, the reduction of aggregate demand, and the depletion of state budgets, in addition to this, the beginning of the Russian-Ukrainian conflict and the imposition of sanctions on banning trading in Russian oil and gas on the world stock exchanges caused a rapid increase in the prices of energy in Europe, this reflected in the prices of almost all products and services, and the same resulted in a characteristically high or double-digit inflation rate within the Eurozone.
The subject of the research is the analysis of the role of monetary policy in the stabilization of inflation in the Eurozone through monetary measures, instruments of the European Central Bank and transmission channels. The scientific goal of the research is to examine the impact of monetary measures on the stabilization of inflation in the Eurozone by applying a theoretical-methodological basis and quantitative analysis.
From the research it can be concluded that with a high inflation rate, the monetary policy has a significant role in creating policies and measures for stabilization and reduction of inflation precisely because a significant correlation has been identified between inflation and the variables that can be affected by monetary measures, it can also be concluded that the Eurozone, even though known as a complicated optimal currency area due to the fact that different countries are in different business cycles, the ECB's measures had a stabilizing role and contribute to the reduction of inflation and macroeconomic stability as a whole.
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