Title: The Role of Monetary Policies on Economic Stability Indicators in Sudan during the Period 2010-2020
Authors: Dr. HOWYDA ELTAHIR HASSAN TAHA, Dr. ABDELRAHMAN MANOFAL GORASHI MUSA-
Volume: 9
Issue: 10
Pages: 276-298
Publication Date: 2025/10/28
Abstract:
This study aims to identify the concepts associated with monetary policy and economic stability and their indicators, and to analyze the impact of monetary policy on some indicators of economic stability in Sudan. The study relied on the descriptive-analytical approach, which describes and analyzes the effectiveness of monetary policies in achieving economic stability. The aim is to arrive at logical conclusions that contribute to providing proposed solutions and perspectives to the study problem. The study concluded that monetary policy primarily aims to achieve price stability by controlling the money supply, which contributes to reducing inflation and stabilizing the currency exchange rate, which is an essential factor in attracting local and foreign investment. Monetary policy also contributes to stimulating economic growth by adjusting interest rates. Lowering interest rates encourages borrowing and investment, while raising them reduces spending and promotes savings. Monetary policy is a pivotal tool in addressing economic challenges and crises. The study recommended the adoption of sound monetary policies that contribute to exchange rate stability, which would support foreign trade, increase foreign capital flows, and improve the balance of payments. The study also emphasized that the effectiveness of monetary policy requires tight coordination with other economic policies, most notably fiscal policy, to achieve comprehensive economic goals. This effectiveness relies on the central bank's credibility and transparency in defining its objectives and continuous communication with the market and society, which contributes to creating stable expectations that positively influence the decisions of investors and consumers.