The Trade-off between Macroeconomic Policy Objectives: Reality and Challenges

Abstract

Macroeconomic policy has garnered extensive scholarly attention due to its pivotal role in addressing economic imbalances. Within this framework, the Central Bank emerges as a primary actor, necessitating full autonomy in formulating and directing monetary policy. Such independence ensures the effectiveness of its instruments in stimulating economic growth, minimizing time lags, and averting conflicts of interest arising from government coordination. This study concludes that the efficiency of economic policy within the national economy is contingent upon establishing an institutional environment and structural conditions that mitigate restrictive factors, thereby ensuring the achievement of set economic objectives with minimal impediments.