№ 10/2022

Fìnansi Ukr. 2022 (10): 66–79https://doi.org/10.33763/finukr2022.10.066

MONETARY POLICY

HLADKYH Dmytro ¹, LYUBICH Oleksandr ²

¹National Institute for Strategic Studies
OrcID ID : https://orcid.org/0000-0001-5276-5521
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9339-4242

Key tools for reducing inflation in Ukraine

Introduction. During 2022, the absolute majority of the world\'s countries faced an unprecedented increase in the rate of inflation, which is connected, in particular, with the disruption of logistics chains, the tendency to increase energy prices and the long-term policy of quantitative easing, which was followed by the central banks of most developed countries during the previous years. Escalation of military operations in Ukraine also became a more important driver of price growth in the world.
Problems. Establishing the prerequisites and substantiating the prospects for the implementation of a set of state regulatory measures in the monetary sphere, aimed at reducing the rate of price growth in Ukraine.
The goal is to analyze the key factors of inflation in Ukraine during 2022 and justify the most important state measures aimed at ensuring price stability in the short- and medium-term perspectives.
Materials and methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical.
The results. The main endogenous problems that stand in the way of reducing the rate of inflation in Ukraine are analyzed: forced emission, insufficient level of coordination of actions of state institutions in the process of implementing monetary policy, devaluation of the hryvnia, low level of motivation of banks and depositors to conclude term deposit agreements. Within the scope of solving these problems, a number of measures have been proposed to finance the budget deficit in a non-emission way, to ensure the coordination of the actions of the government and the NBU in this area, to support the exchange rate stability of the hryvnia and to reorient the savings of the population in the direction of hryvnia term deposits.
Conclusions. The main tools for reducing inflation rates in Ukraine should be, in particular, lowering the yield of NBU certificates of deposit to a level comparable to the yield of domestic state loan bonds; ensuring joint responsibility, consistency and transparency of actions of state institutions in the process of implementing monetary policy; restoration of the practice of compulsory sale of a part of the foreign currency earnings of exporters; increase in supply on the cash foreign exchange market; simultaneous increase in the yield of new time deposits of the population in the national currency at the level of four state banks; restoration of the differentiation of standards for mandatory reservation of funds for hryvnia liabilities of banks; intensification of the use of non-monetary instruments of the state\'s anti-inflationary policy, which are related to the increase in the supply of consumer goods and the reduction of the negative impact of monopolistic / oligopoly behavior of consumer market participants.

Keywords:inflation, hryvnia, currency, exchange rate, devaluation, emission, OVDP, NBU

JEL: -

Hladkyh D. . Key tools for reducing inflation in Ukraine / D. Hladkyh, O. . Lyubich // Фінанси України. - 2022. - № 10. - C. 66-79.

Article original in Ukrainian (pp. 66 - 79)

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