THE THEORY OF RATIONAL INPUTS AND THE EFFECTIVENESS OF MONETARY POLICY

This work analyzes the essence of the theory of rational inputs, its impact on economic processes and its relationship with monetary policy. The theory of rational inputs represents the effective use of all available information by economic entities, taking into account future economic changes in advance. Based on this theory, the formation of prices in the market, the level of inflation and economic stability are studied.

It also covers the impact on the economy through the main instruments of monetary policy – interest rates, open market operations and reserve requirements. The effectiveness of monetary policy in the context of rational expectations, its short-term and long-term results are analyzed separately. The work also considers the importance of central bank policy in modern economic conditions and its role in ensuring economic stability.