Global Economic Dynamics: An Analysis of the Impact of Monetary Policy on Economic Growth in Developing Countries

Abstract

This study aims to analyze the impact of monetary policy on economic growth in developing countries. Using a qualitative approach, this study examines secondary data from central bank annual reports, monetary policy, and relevant economic indicators from countries such as Indonesia, Brazil, and India. Through thematic analysis, the study found that expansionary monetary policies, such as lowering interest rates and easing liquidity, can stimulate economic growth in the short term, especially in countries with more diversified economies. However, this positive impact is highly dependent on external and internal factors such as economic structure, fiscal policy, and dependence on commodity exports. In addition, the study highlights the importance of the role of independent central banks in formulating effective monetary policy. The results of this study provide valuable insights for policymakers in designing monetary policies that are more adaptive and responsive to global and domestic economic dynamics