THE IMPACT OF MONETARY POLICY ON FINANCIAL MARKETS IN DEVELOPING ECONOMIES

Monetary policy plays a crucial role in regulating financial markets and ensuring economic stability. In developing economies, where financial systems are often fragile, monetary policy is a primary tool for managing inflation, stabilizing exchange rates, and fostering economic growth. This article explores how monetary policy affects financial markets in developing countries, focusing on its mechanisms, challenges, and impacts. Drawing on examples from countries like India, Nigeria, and Brazil, the article highlights the importance of balancing internal economic priorities with external pressures such as global financial shocks. The findings underline the need for robust financial infrastructure and a proactive policy approach to ensure sustainable economic development.