INTERNATIONAL FINANCES

SELIVERSTOV Valerii ¹

¹Zaporozhye National Technical University
OrcID ID : https://orcid.org/0000-0003-2601-8834

Features of maintaining the price stability in Ukraine

Global changes, taking place in the global economy, stimulate new approaches to solving problems related to the price stability achieved by the use of the monetary transmission mechanism in the most of countries. In recent years the impact of monetary policy instruments on price stability has been a subject of research by many domestic and foreign scholars, but the issue of the impact of monetary policy tools on inflation processes in Ukraine on the basis of building regression models has not been investigated enough. Thus, the main purpose of the article is to analyze the effectiveness of influence of monetary instruments on inflation rate based on construction of regression models. The method of the least squares was used for regression analysis, built-in analysis package Microsoft Excel. The data sample covers the period from November, 2002 till October, 2012 and equals 99 observations. The obtained results of the study indicate a lack of impact of the monetary policy tools to maintenance of the price stability in Ukraine. Conclusions made on the basis of the results of the study suggest that the greatest threat to the price stability in Ukraine is the monopoly of large companies on the pricing process. Therefore, maintenance of the price stability only by the use of monetary measures without a real struggle with an existing monopoly on pricing is not only ineffective, but harmful for economic development within current circumstances in Ukraine

Keywords: monetary transmission mechanism, econometric specifications, regression model, price stability, consumer price index, index of fuel and non-fuel commodities, monopoly pricing

JEL: E30, E31, E52, C88

SELIVERSTOV V. . Features of maintaining the price stability in Ukraine / V. . SELIVERSTOV // Фінанси України. - 2014. - № 5. - C. 74-85.