№ 6/2022

Fìnansi Ukr. 2022 (6): 70–84https://doi.org/10.33763/finukr2022.06.070

MONETARY POLICY

SHAROV Oleksandr ¹

¹SO "Institute for Economics and Forecasting of the NAS of Ukraine"
OrcID ID : https://orcid.org/0000-0001-8460-9996

The national currency incipience – thirty years after

Introduction. The article deals with the establishment of the National Monetary System of the independent Ukraine, which was marked by the emergence of the first national currency - the Ukrainian karbovanetz. The very appearance of the Ukrainian karbovanetz ensured the possibility of further development of the Monetary System of Ukraine.
Problem Statement. Creating our own national currency was neither an non-alternative nor an easy process, as there were a number of problems - both in the domestic economy and in international relations - that had to be solved first.
Purpose. The goal is to cover the retrospective of the establishment of the National Monetary Unit, highlighting the main principles of its creation, which continue to influence the state of the modern Monetary System of Ukraine.
Methods. The generally known and narrow-professional statistical and factual materials, as well as his own memories and impressions of the author, who was a direct participant in this process, were used. These materials are processed using methods of scientific analysis and comparison.
Results. The article examines specific facts that characterize process of the national currency creation, as well as the views of politicians and economists who determined its course and dynamics. The author gives his own assessments of past events and tries to analyze their impact on the modern Monetary System of Ukraine.
Conclusions. The first, radical monetary reform in modern Ukraine was carried out in the process of introducing its own monetary unit into circulation - the karbovanetz (1991-1992). Unfortunately, when it was carried out, contrary to the position of the author and his associates, an “inflationary spiral” was unleashed with the intention of transferring all economic troubles caused by hyperinflation to the karbovanetz so that the next national currency, the hryvnia, would be based on a “new, healthy” basis. As it was clear from the theoretical point of view, this approach was wrong and only led to the inheritance of the processes of inflation and devaluation (albeit at a lower rate).

Keywords:ruble space, Ukrainian karbovanetz, Money Supply, Monetary reform

JEL: E42, E52, E58

Sharov O. . The national currency incipience – thirty years after / O. Sharov // Фінанси України. - 2022. - № 6. - C. 70-84.

Article original in Ukrainian (pp. 70 - 84)

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