Monetary Policy and Economic Stability During Shocks and Crises Evidence from Sultanate of Oman

This study looks at how the monetary policy of the Central Bank of Oman helps in keeping the economy stable throughout times of shocks and crises such as COVID-19 pandemic, fluctuations in oil prices, and international financial disruptions. The study also examines the impact of important monetary tools, including reserve requirements, interest rate adjustments, liquidity support, and open market operations, on macroeconomic indicators, such as GDP growth, inflation, unemployment, and exchange rate stability, using time-series data from 2010 to 2023. The results show that the prompt and flexible monetary interventions have lessened adverse economic effects during crises, but they also point to areas that requires development in terms of countercyclical policy design, digital financial infrastructure, and transparency. The study advances knowledge of the monetary resilience of small open economies and makes policy suggestions consistent with Oman Vision 2040.