Impact of politically generated shocks on monetary performance: a cross-country comparison
During the post-Great Recession period, macroeconomic stability had more often been threatened by socioeconomic shocks due to the rising of public discontent with the high unemployment rate and poverty, the activation of radical parties and movements, and the aggravation of the geopolitical confront...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2019-09-01
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| Series: | Banks and Bank Systems |
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| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12492/BBS_2019_03_Zhuravka.pdf |
| _version_ | 1818032510696685568 |
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| author | Fedir Zhuravka Mykhaylo Makarenko Valerii Osetskyi Oleksandr Podmarov Victor Chentsov |
| author_facet | Fedir Zhuravka Mykhaylo Makarenko Valerii Osetskyi Oleksandr Podmarov Victor Chentsov |
| author_sort | Fedir Zhuravka |
| collection | DOAJ |
| description | During the post-Great Recession period, macroeconomic stability had more often been threatened by socioeconomic shocks due to the rising of public discontent with the high unemployment rate and poverty, the activation of radical parties and movements, and the aggravation of the geopolitical confrontation in the world. Depending on the type and depth of such shocks, they become politically generated shocks and, in particular, affect the monetary sphere. The article investigates three types of politically generated shocks and their impact on the monetary sphere. It has been found out that the shocks generated by political populism are characterized by fiscal domination in the economy, the use of monetary measures in the budget deficit financing. Shocks arising after the use of international sanctions against certain countries have an external origin and primarily cause the increase in national exchange markets volatility. On the whole, macroeconomic and, especially, monetary instability is the result of the great shocks for the economy, the depth and duration of which are determined by the nature of the crisis, particularly, when country participates in the military conflict. The aforementioned types of politically generated shocks are analyzed based on the experience of countries such as Argentina, Turkey, and Ukraine, which at one time introduced the regime of inflation targeting in monetary policy, but were forced to modify it influenced by political and economic instability. |
| first_indexed | 2024-12-10T06:08:31Z |
| format | Article |
| id | doaj.art-2b10a6e86be8475ab27f80c8baacd933 |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-12-10T06:08:31Z |
| publishDate | 2019-09-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-2b10a6e86be8475ab27f80c8baacd9332022-12-22T01:59:37ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742019-09-011439911210.21511/bbs.14(3).2019.0912492Impact of politically generated shocks on monetary performance: a cross-country comparisonFedir Zhuravka0Mykhaylo Makarenko1Valerii Osetskyi2Oleksandr Podmarov3Victor Chentsov4Doctor of Economics, Professor, Department of the International Economic Relations, Sumy State UniversityDoctor of Economics, Professor, Department of the International Economic Relations, Sumy State UniversityDoctor of Economics, Professor, Department of Economic Theory, Macro- and Microeconomics, Taras Shevchenko National University of KyivPh.D. Student, Sumy State UniversityDoctor of Public Management and Administration, First Vice-Rector, University of Customs and FinanceDuring the post-Great Recession period, macroeconomic stability had more often been threatened by socioeconomic shocks due to the rising of public discontent with the high unemployment rate and poverty, the activation of radical parties and movements, and the aggravation of the geopolitical confrontation in the world. Depending on the type and depth of such shocks, they become politically generated shocks and, in particular, affect the monetary sphere. The article investigates three types of politically generated shocks and their impact on the monetary sphere. It has been found out that the shocks generated by political populism are characterized by fiscal domination in the economy, the use of monetary measures in the budget deficit financing. Shocks arising after the use of international sanctions against certain countries have an external origin and primarily cause the increase in national exchange markets volatility. On the whole, macroeconomic and, especially, monetary instability is the result of the great shocks for the economy, the depth and duration of which are determined by the nature of the crisis, particularly, when country participates in the military conflict. The aforementioned types of politically generated shocks are analyzed based on the experience of countries such as Argentina, Turkey, and Ukraine, which at one time introduced the regime of inflation targeting in monetary policy, but were forced to modify it influenced by political and economic instability.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12492/BBS_2019_03_Zhuravka.pdfArgentinainflation targetingmacroeconomic instabilitymonetary policypolitically generated shocksTurkey |
| spellingShingle | Fedir Zhuravka Mykhaylo Makarenko Valerii Osetskyi Oleksandr Podmarov Victor Chentsov Impact of politically generated shocks on monetary performance: a cross-country comparison Banks and Bank Systems Argentina inflation targeting macroeconomic instability monetary policy politically generated shocks Turkey |
| title | Impact of politically generated shocks on monetary performance: a cross-country comparison |
| title_full | Impact of politically generated shocks on monetary performance: a cross-country comparison |
| title_fullStr | Impact of politically generated shocks on monetary performance: a cross-country comparison |
| title_full_unstemmed | Impact of politically generated shocks on monetary performance: a cross-country comparison |
| title_short | Impact of politically generated shocks on monetary performance: a cross-country comparison |
| title_sort | impact of politically generated shocks on monetary performance a cross country comparison |
| topic | Argentina inflation targeting macroeconomic instability monetary policy politically generated shocks Turkey |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12492/BBS_2019_03_Zhuravka.pdf |
| work_keys_str_mv | AT fedirzhuravka impactofpoliticallygeneratedshocksonmonetaryperformanceacrosscountrycomparison AT mykhaylomakarenko impactofpoliticallygeneratedshocksonmonetaryperformanceacrosscountrycomparison AT valeriiosetskyi impactofpoliticallygeneratedshocksonmonetaryperformanceacrosscountrycomparison AT oleksandrpodmarov impactofpoliticallygeneratedshocksonmonetaryperformanceacrosscountrycomparison AT victorchentsov impactofpoliticallygeneratedshocksonmonetaryperformanceacrosscountrycomparison |