Monetary Policy as a Wicked Problem: Complexity, Challenges, and Implications

This paper offers a novel exploration at the intersection of monetary policy and the concept of "wicked problems." Through a comprehensive analysis, it reveals how the complexities, uncertainties, and conflicting objectives inherent in monetary policy align with the characteristics of wicked problems. By integrating insights from various disciplines and offering innovative perspectives, it underscores the need for a nuanced and adaptive approach to policymaking. Emphasizing interdisciplinary collaboration, stakeholder engagement, adaptive management strategies, and a risk management framework, the paper proposes novel methodologies to address the challenges of monetary policy effectively and to complement the existing framework of monetary policymaking. The paper sheds light on the intricate nature of monetary policy challenges and lays the groundwork for future research and policy development. Ultimately, it underscores the importance of understanding monetary policy through the lens of wicked problems, offering a new paradigm for navigating its complexities and enhancing real-world outcomes.