|UDC 338.23:336.74||DOI: https://doi.org/10.31617/zt.knute.2019(103)10|
Candidate of Economic Sciences, Associate Professor, Associate Professor
at the Department of Finance, Kyiv National University of Trade and Economics
19, Kyoto str., Kyiv, 02156, Ukraine
MONETARY POLICY IN TRANSFORMATION ECONOMY
Background. The improvement of monetary policy is relevant to each country, and this issue becomes a matter of particular importance for the transformational economy. The combinative use of tools and methods should not contradict the goals of establishing price and financial stability in the country. The severance of the main goal of politics, the hierarchical subordination of other goals to it, and the definition of the spectrum of instruments for its achievement contribute to increasing the efficiency of monetary regulation.
Analysis of recent research and publications. The works of O. Baranovsky, S. Bukovynsky, T. Unkovska and M. Dzhus, O. Dziubliuk, V. Mischenko, S. Naumenkova, S. Mischenko, V. Ivanov and I. Lyon, K. Sims, S. Henson and J. Shtein, N. Shulga are devoted to the issues of improving the basic principles of monetary policy development. The scientific researches, which are devoted to certain peculiarities of the implementation of monetary policy in countries with a transformational economy, in particular E. Gosh, J. Ostri and M. Chemon, V. Koziuk and L. Menkoff are of considerable interest.
The aim of the article is to determine the provisions on the formation and implementation of monetary policy in the transformational economy, taking into account institutional features and restrictions when using monetary instruments.
Materials and methods. The theoretical and methodological basis of the research is the scientific works of domestic and foreign scientists on the problem under consideration. The dialectical, systemic and structural approaches, methods of analysis and synthesis, comparison, generalization, scientific abstraction are applied.
Results. The peculiarities of the formation and realization of monetary policy in the transformational economy are considered. The expediency of the development of institutes in order to increase the effectiveness of monetary regulation is substantiated. It has been determined that the independence and transparency of the central bank play a significant role in achieving price and financial stability. The degree of transparency of the National Bank of Ukraine has been assessed.
Conclusion. In the transformational economy, the monetary policy objectives are shifted from declared quite often, and several monetary regimes co-exist – de facto and de jure. The development of the basic principles of monetary policy to counteract the intentions of returning to the trajectory of targeting the exchange rate, concentration of efforts of the central bank on achievement of price stability is necessary. The central bank must have a high level of independence, which will accelerate the speed of adoption and effectiveness of management decisions. The activities of the central bank should be timely, sound, openly taken and accompanied by appropriate verbal interventions.
Keywords: monetary policy, price stability, monetary regime, inflation targeting, exchange rate, central bank independence.
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