INFLUENCE OF MONETARY POLICY ON FINANCIAL STABILITY AND ECONOMIC DEVELOPMENT

Introduction. This article examines the impact of monetary policy on financial stability and economic development, with a special focus on the experience of developed countries. By analyzing both traditional and unconventional monetary regulation tools, the article highlights their role in shaping macroeconomic parameters such as inflation, interest rates, and overall economic activity. Particular attention is paid to the mechanisms by which these tools influence financial stability and the potential to prevent economic crises. The article also considers the interaction between monetary policy and other areas of economic regulation, emphasizing the importance of coordination among different policy directions to achieve overall economic stability and resilience. The conclusions of the study aim to contribute to the understanding of best practices and strategic approaches that central banks can apply for effective national economic management under complex global conditions. Purpose. The purpose of this article is to conduct a thorough investigation of the impact of monetary policy on financial stability and economic development, focusing particularly on the analysis of traditional and unconventional monetary regulation tools by central banks. The article seeks to identify and substantiate the connections between monetary policy and key macroeconomic indicators, as well as to assess strategic approaches that enhance economic resilience and prevent potential financial crises. Considering these aspects, mediation in Ukraine has significant potential for development as an important tool for conflict resolution. The task for legislators and professional communities involves further adaptation of domestic legislation to international practices and raising awareness about the benefits of mediation among the population. Such steps will promote trust in mediation and its use as an effective means of justice. Materials and Methods. This study is based on the analysis of scientific publications, official reports of central banks, and economic indicators. Reviewing academic articles provides theoretical foundations and analytical data to understand the tools of monetary policy and their impact on the economy. Official documents from central banks offer information on monetary strategies and forecasts used to analyze policy changes, while economic indicators such as GDP and inflation help assess the real impact of monetary decisions. The use of systemic and structural-functional approaches in this research ensures a deep understanding of monetary policy. The systemic approach helps identify the interconnections between elements of the monetary system and their impact on the economy, while the structural-functional approach focuses on the role of each component within the broader economic system, analyzing how changes in monetary policy affect economic processes and financial stability. These methods allow for identifying how structural changes can contribute to effective and stable development.