The Impact of Monetary Policy On Economic Stabilization In Azerbaijan

Abstract

The results show that GDP and the exchange rate significantly affect economic stability. Specifically, GDP has a positive impact, whereas the exchange rate has a negative impact on economic stability. On the other hand, the findings suggest that interest rates have an insignificant and negative effect on economic stability, while money supply has a positive and statistically significant effect on economic stability. The study concludes with policy recommendations aimed at bolstering the resilience of Azerbaijan's economy. These recommendations emphasize the importance of diversifying the economic structure and improving frameworks to manage external vulnerabilities and encourage sustainable growth.