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Greece | Economics | Volume 14 Issue 10, October 2025 | Pages: 1735 - 1744
Monetary Policy in Transition: A Literature Review on Institutions, Expectations, and Emerging Challenges
Abstract: This paper reviews recent literature on monetary policy, highlighting institutional frameworks, behavioral dynamics, and emerging macroeconomic challenges. Studies are grouped into six themes: central bank independence, policy effectiveness in developing economies, expectations and communication, inflation under external shocks, unconventional instruments, and sustainability through green finance. The review shows that while inflation control and output stabilization remain central, credibility, political economy constraints, and environmental factors increasingly shape outcomes. Significant gaps persist in integrating institutional, behavioral, and ecological dimensions into coherent policy frameworks. Future research should bridge traditional models with approaches reflecting uncertainty, heterogeneity, and structural change.
Keywords: Monetary policy, Central bank credibility, Inflation expectations, Unconventional policies, Green finance
How to Cite?: Dr. Dimitris Kalimeris, "Monetary Policy in Transition: A Literature Review on Institutions, Expectations, and Emerging Challenges", Volume 14 Issue 10, October 2025, International Journal of Science and Research (IJSR), Pages: 1735-1744, https://www.ijsr.net/getabstract.php?paperid=SR251024184655, DOI: https://dx.doi.org/10.21275/SR251024184655