Abstract
In today’s world, in every developed country, the entire monetary system, which is part of the of the financial system and, accordingly, the national economy, develops exclusively using a range of mon-etary tools, the types of which depend on the current economic situation in the country and the main strategic vectors of its further development. The efficiency of these tools, their effectiveness, and correct use are important components of building an effective system of state regulation of the economy.In the article, theoretical provision of the application of certain types of monetary tools to stimulate economic development of the state are considered. In particular, the author considers certain aspects of the monetarism as a scientific theory and identifies its substantive features. Also, scientific approaches to the consideration of the essence of monetary tools and separation of their types are analysed. Considerable attention is paid to substantiating and deepening of the theoretical and methodo-logical provisions for the transmission mechanism functioning, specifying its content, specific essential features, describing the components of this mechanism, their interaction and main subjects. It is pro-posed by the author to consider the transmission mechanism as a set of monetary tools, the use of which allows state institutions to influence the behaviour of economic entities through appropriate channels by changing the main macroeconomic indicators (exchange rate, inflation, demand, supply, expectations of the population and business). Within the article, the channels through which the monetary tools can influence economic processes are examined in detail, namely: the use of discount rate, long-term rates, and the use of the exchange rate.It is also established that the rational use of the monetary tools, a successful combination of their individual types, and the ability to predict the consequences of their use are important components of the implementation of the effective model of the monetary policy in the country, which stimulates eco-nomic development and curbs inflation.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Problems and prospects of economics and management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
