№ 2/2018

Fìnansi Ukr. 2018 (2): 9–25https://doi.org/10.33763/finukr2018.02.009

ECONOMIC SECURITY: THEORY, PRACTICE, MANAGEMENT

DANYLYSHYN Bohdan ¹

¹Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0002-4058-1191

Main directions of monetary policy of Ukraine

Monetary-and-credit regulation, aimed only at short-term and medium-term objectives, creates significant risks and problems for economic environment in the future. In developing countries, conventional, traditional approaches to monetary policy may not always be sufficient to ensure economic growth. Absence of competitive environment, high material intensity and energy intensity of products, low level of the development of financial market - all these hinder the effectiveness of monetary management, based only on inflation targeting and a limited set of tools. In the application of monetary and credit regulation instruments, the central banks in developing countries should be flexible enough and innovative. The development of our national strategy for the monetary policy, which will create effective principles for sustainable development, is a challenge of the time. Fundamental risks in the banking sector remain significant. Gradual increase of the interest rate of the National Bank of Ukraine for the last five months has been the essence of discussions in the scientific and professional community. The effect of this monetary instrument, together with other leverages of state regulation, is aimed at achieving the stated objectives of the program. It is important to use correctly its capabilities, as well as to identify correctly its hallmarks. A number of factors continue to affect negatively the expansion potential of credit provision, among them are the following: high payment for loans; a significant level of debt burden among corporate borrowers; investing of funds by intermediary institutions in deposit certificates of the National Bank and Government Bonds. Decisions that drastically affect the overall state of the national economic policy should be taken on a complementary basis not only by the Board of the National Bank, as an executive body, but also by the Council of the National Bank or the Financial Stability Board, with the participation of authorized representatives of the Cabinet of Ministers of Ukraine, experts, etc.

Keywords:monetary regulation, monetary policy, economic growth, risks, inflation targeting, banking sector, interest rate, lending, debt burden, borrowers, deposits

JEL: E44, E52, H58, H60

Danylyshyn B. . Main directions of monetary policy of Ukraine / B. . Danylyshyn // Фінанси України. - 2018. - № 2. - C. 9-25.

Article original in Ukrainian (pp. 9 - 25)

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