Financial Policy of Ukraine for the Maintenance of Macroeconomic Stability
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Browsing Financial Policy of Ukraine for the Maintenance of Macroeconomic Stability by Author "Primierova, Olena"
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Item Evaluation of the effectiveness of monetary policy in Ukraine(Kyiv-Mohyla Academy Publishing House, 2023) Veremiienko, Vitalii; Primierova, OlenaThroughout the war period, the NBU's monetary policy was adaptive, focusing on crisis management and the stabilization of the financial system while laying the groundwork for post-conflict economic recovery. The unique challenges posed by the war necessitated a departure from conventional monetary policy practices, emphasizing the need for flexibility and responsiveness in central banking during times of crisis. Based on the information provided above, Ukraine followed a similar path to other countries when the NBU chose to peg the exchange rate of hryvnia to USD during the onset of the invasion. This move was made by the regulator to maintain stability in economic agents' expectations and thereby ensure macro-financial stability during the war. In addition, the fixed exchange rate played a vital role in controlling inflation.Item Inflation targeting as the main tool of monetary policy(Kyiv-Mohyla Academy Publishing House, 2023) Tomilina, Mariia; Veremiienko, Vitalii; Primierova, OlenaInflation targeting (IT) is currently one of the most popular monetary policy frameworks in both advanced and emerging economies. As of 2023, more than 70 central banks around the world have adopted it in some form, including the US Federal Reserve System, the ECB, the Bank of Japan, and the Bank of England.Item The monetary policy experience during the war and post-war periods(Kyiv-Mohyla Academy Publishing House, 2023) Tomilina, Mariia; Primierova, OlenaDuring a crisis, the objectives of a monetary policy shift to address the unique challenges presented by a military economy. In such an economy, government expenditure rises, and the state's role in the economy becomes more prominent. Furthermore, economic decisions are dominated by security concerns, and the economic multiplier effect is limited due to the destruction caused by war. If we look at the Federal Reserve System of the U.S. when World War II outbroke, the challenges for dealing with a considerable surge in the federal deficit due to increased war expenditures occurred even though the Treasury was depended more on taxes than it was during World War I and even with the rise in tax revenue due to the significant growth in industrial production.Item Recommendations for enhancing monetary policy interventions to achieve macroeconomic stability in Ukraine over the medium term(Kyiv-Mohyla Academy Publishing House, 2023) Nasachenko, Mariia; Primierova, OlenaMonetary policy constitutes a pivotal instrument of economic governance, enabling the regulation of inflation levels, ensuring the stability of the financial system, and supporting sustainable economic growth. However, the implementation of monetary policy amidst macroeconomic instability presents unique characteristics and poses a complex task for central banks and other state authorities. A notable challenge is that macroeconomic instability diminishes the effectiveness of monetary policy. For instance, in a recessionary context, increasing the discount rate does not yield the anticipated effect of reducing inflation and diminishing investment activity. Furthermore, a higher policy key rate can augment the risk of insolvency for households and businesses.