Preconditions for Introduction and Prospects for Implementation of the Inflation Targeting Regime in Ukraine
The article is aimed at studying the preconditions for introduction, the main problems and prospects for implementation of the inflation targeting regime in Ukraine. In 2014, the country got into a crisis that affected at once the currency market, the banking system and the real sector, resulting in...
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| Format: | Article |
| Language: | English |
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Research Centre of Industrial Problems of Development of NAS of Ukraine
2017-07-01
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| Series: | Bìznes Inform |
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| Online Access: | http://www.business-inform.net/export_pdf/business-inform-2017-7_0-pages-204_208.pdf |
| _version_ | 1818927826054676480 |
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| author | Hladkykh Dmytro M. |
| author_facet | Hladkykh Dmytro M. |
| author_sort | Hladkykh Dmytro M. |
| collection | DOAJ |
| description | The article is aimed at studying the preconditions for introduction, the main problems and prospects for implementation of the inflation targeting regime in Ukraine. In 2014, the country got into a crisis that affected at once the currency market, the banking system and the real sector, resulting in devaluations, bank failures, decreasing GDP, growing prices. One of the responses to the financial challenges was the transition to inflationary targeting, which led to a slowdown in inflation in 2016-2017. Goals of an inflation targeting are both price growth and international reserves. Achieving these goals implies a policy of «expensive money», exclusive smoothing by interventions of excessive fluctuations, lack of fiscal dominance, prudent fiscal policies, and elimination of quasi-fiscal imbalances. The risks of current monetary policy are the slow implementation of reforms, which can stop external lending, «pre-election» increases in social spending, debt burden growth, and the escalation of hostilities in the east of the country. Further actions by the State should include: minimization of monetary emissions, further reduction of the interest rate, providing the positive level of rates by the National Bank of Ukraine in terms of inflation, increased use of compulsory reservation of the funds involved, restriction of sales of domestic bonds and the NBU certificates to banks. |
| first_indexed | 2024-12-20T03:19:11Z |
| format | Article |
| id | doaj.art-b806d0eb58cb4725b42a258ea515ddc2 |
| institution | Directory Open Access Journal |
| issn | 2222-4459 2311-116X |
| language | English |
| last_indexed | 2024-12-20T03:19:11Z |
| publishDate | 2017-07-01 |
| publisher | Research Centre of Industrial Problems of Development of NAS of Ukraine |
| record_format | Article |
| series | Bìznes Inform |
| spelling | doaj.art-b806d0eb58cb4725b42a258ea515ddc22022-12-21T19:55:16ZengResearch Centre of Industrial Problems of Development of NAS of UkraineBìznes Inform2222-44592311-116X2017-07-017474204208Preconditions for Introduction and Prospects for Implementation of the Inflation Targeting Regime in UkraineHladkykh Dmytro M.0Candidate of Sciences (Economics), Associate Professor, Head of, Sector of Monetary Policy of the Department of Economic Security, The National Institute for Strategic StudiesThe article is aimed at studying the preconditions for introduction, the main problems and prospects for implementation of the inflation targeting regime in Ukraine. In 2014, the country got into a crisis that affected at once the currency market, the banking system and the real sector, resulting in devaluations, bank failures, decreasing GDP, growing prices. One of the responses to the financial challenges was the transition to inflationary targeting, which led to a slowdown in inflation in 2016-2017. Goals of an inflation targeting are both price growth and international reserves. Achieving these goals implies a policy of «expensive money», exclusive smoothing by interventions of excessive fluctuations, lack of fiscal dominance, prudent fiscal policies, and elimination of quasi-fiscal imbalances. The risks of current monetary policy are the slow implementation of reforms, which can stop external lending, «pre-election» increases in social spending, debt burden growth, and the escalation of hostilities in the east of the country. Further actions by the State should include: minimization of monetary emissions, further reduction of the interest rate, providing the positive level of rates by the National Bank of Ukraine in terms of inflation, increased use of compulsory reservation of the funds involved, restriction of sales of domestic bonds and the NBU certificates to banks.http://www.business-inform.net/export_pdf/business-inform-2017-7_0-pages-204_208.pdfinflationinflation targetingexchange rateinterest ratesNational Bank of Ukraine |
| spellingShingle | Hladkykh Dmytro M. Preconditions for Introduction and Prospects for Implementation of the Inflation Targeting Regime in Ukraine Bìznes Inform inflation inflation targeting exchange rate interest rates National Bank of Ukraine |
| title | Preconditions for Introduction and Prospects for Implementation of the Inflation Targeting Regime in Ukraine |
| title_full | Preconditions for Introduction and Prospects for Implementation of the Inflation Targeting Regime in Ukraine |
| title_fullStr | Preconditions for Introduction and Prospects for Implementation of the Inflation Targeting Regime in Ukraine |
| title_full_unstemmed | Preconditions for Introduction and Prospects for Implementation of the Inflation Targeting Regime in Ukraine |
| title_short | Preconditions for Introduction and Prospects for Implementation of the Inflation Targeting Regime in Ukraine |
| title_sort | preconditions for introduction and prospects for implementation of the inflation targeting regime in ukraine |
| topic | inflation inflation targeting exchange rate interest rates National Bank of Ukraine |
| url | http://www.business-inform.net/export_pdf/business-inform-2017-7_0-pages-204_208.pdf |
| work_keys_str_mv | AT hladkykhdmytrom preconditionsforintroductionandprospectsforimplementationoftheinflationtargetingregimeinukraine |