GRAPH THEORY AS A CATALYST FOR EFFECTIVE ECONOMIC POLICY DEVELOPMENT: UNVEILING THE POWER OF NETWORK ANALYSIS

Abstract

Developing and implementing effective economic policies requires a comprehensive understanding of complex systems and their interdependencies. In recent years, graph theory and network analysis have emerged as valuable tools for analyzing intricate relationships and uncovering hidden patterns within economic systems. This research paper explores the intersection of graph theory and monetary policy development, highlighting the potential of network analysis in informing evidence-based policy decisions. By employing graph theory techniques, policymakers can gain insights into economic network structure, dynamics, and vulnerabilities, enabling them to design targeted interventions, foster economic growth, and mitigate systemic risks. This paper examines various applications of graph theory in economic policy development, including trade networks, financial systems, supply chains, and social networks. It also discusses the benefits, challenges, and future directions of employing graph theory techniques in economic policy formulation.