Publication Details
Abstract
In this scientific work, is studied the influence of the interest rate channel of the transmission mechanism on economy. The analysis was carried out in case of Uzbekistan. The indicators were converted to real values relative to 2017q1, covering the period 2003q1-2024q2. We conduct our empirical analysis through the Least Squares with Breaks model. Based on the results of the Least Squares with Breaks model, the main interest rate of the central bank, along with long-term loan rates, significantly impacted inflation control during the 2017Q2 – 2024Q2 period. Despite the numerous measures implemented to improve the central bank's activities during the 2017Q2 – 2024Q2 period, no significant changes were observed in the impact of the interest rate channel on gross production. The analysis indicates that even in this period, the primary factor influencing gross production remains changes in the money supply.