MONETARY POLICY
SAVLUK Mykhajlo
The NBU functional tasks transformation in the conditions of systematic imbalance of economy
The article researches the transformation of legislative definitions of the NBU functions since the adoption of the Ukrainian Constitution (1996). Two specific features of this transformation are stated: 1) the NBU social function is confined only to that in the monetary sphere, while the real economy is left beyond its responsibility; 2) the interpretation of the NBU functions was gradually narrowed down to the recognition of price stability as its key objective, which created the legal basis for the introduction of inflation targeting to the monetary policy. Based on such postulates, the NBU introduced elements of such a regime, which caused the deepening of negative phenomena in the economy, as well as complicated its recession recovery. This causality is confirmed by the analysis of the relationship between monetary and economic indicators over 2000-2014. The core monetary indicators have demonstrated downward movement since 2008. An annual growth of the aggregate M3 in the first half of this period amounted to 30,2% but in the second half — only 13,9%, the growth rates of the monetary base dropped adequately from 36,3% to 13,7%. Despite inflation rates reduction from 16,8% to 8,9%, it did not positively affect the economic growth. The first half of this period demonstrated the real GDP growth by 7,3 % on average with further downgrading to 1,4%. The growth rates of the nominal GDP indicated downward movement as well. The NBU discount rate and market rates are still extremely high, that creates problems for business entities to get a bank loan and deteriorates their liquid capital sufficiency.
Keywords:monetary policy, NBU functions, prices stability, inflation targeting.
JEL: E52.
SAVLUK M. . The NBU functional tasks transformation in the conditions of systematic imbalance of economy / M. . SAVLUK // Фінанси України. - 2016. - № 9. - C. 53-.
| Article original in Ukrainian (pp. 53 - 64) | Download | Downloads :107 |
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