Money circulation as a factor of socio-economic wellbeing: analysis of interrelations

The purpose of this study is to conduct a comprehensive analysis of the mechanism by which monetary circulation influences household income and poverty levels, as well as to develop practical recommendations for optimizing economic policy aimed at improving socioeconomic well-being. The methodological framework comprises the following approaches: structural-functional, causal, and normative. The authors identified and analyzed the key channels through which monetary circulation influences living standards: inflation, credit and interest rates, and economic activity. It was established that the positive impact of monetary circulation on well-being is realized only if the conditions of balance and fair income distribution are met. The presented recommendations indicate the need to optimize monetary policy, improve macroprudential regulation, develop financial literacy programs, strengthen social support for the population, and stimulate the development of small and medium-sized businesses. The authors conclude that monetary circulation is a powerful tool for influencing the socioeconomic well-being of the population, the effectiveness of which depends on the quality of economic institutions and the implemented public policy.