THE EFFECTIVENESS OF MACROECONOMIC POLICY IN CONDITIONS OF IMPERFECT PRICES: THEORETICAL AND PRACTICAL ANALYSIS
DOI:
https://doi.org/10.55640/Keywords:
macroeconomic policy, imperfect prices, price rigidity, sticky wages, monetary policy, fiscal policy, inflation, economic stabilization, market imperfections, Keynesian theory, New Keynesian model, aggregate demand, economic fluctuations, policy effectivenessAbstract
This study examines the effectiveness of macroeconomic policy under conditions of imperfect prices, where price rigidities, market frictions, and information asymmetries limit the self-regulating capacity of the economy. The research analyzes key theoretical frameworks, including Keynesian and New Keynesian models, which emphasize the role of sticky prices and wages in shaping economic outcomes. It explores how monetary and fiscal policies influence output, employment, and inflation when prices do not adjust instantly to changes in supply and demand. The paper also provides a practical analysis based on real-world experiences, highlighting the challenges policymakers face in stabilizing the economy during shocks and crises. Special attention is given to the transmission mechanisms of policy tools and their varying effectiveness in short-run versus long-run contexts. The findings suggest that macroeconomic policy plays a crucial role in mitigating economic fluctuations and improving overall stability in imperfect market conditions.
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