PARADOXES OF MONETARY POLICY PROVIDED BY THE NATIONAL BANK OF UKRAINE (OR, FOLLOWING HONORE DE BALZAC “SHINE AND POVERTY OF COURTESANS”)
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Published:
Jun 20, 2024
Abstract
The qualitative and quantitative characteristics of the monetary policy of the National Bank of Ukraine (NBU) have been analyzed. It has been proved that this policy, as a part of general regulatory policy of the state, is a set of measures in the area of money’s circulation to be implemented in order to ensure the stability of the monetary and banking system of Ukraine. The crisis in the country's economy, provoked by the war, became a serious challenge for the NBU that requires improvement of the state monetary policy and searching for effective mechanisms needed to be implemented. In this situation, the NBU has to ensure not only the achievement of the national financial system relatively high level of stability, but also move in its regulatory banking policy, which main purpose is consisting now in supporting the value of money, to a comprehensive assessment of the money’s functions in general.
How to Cite
Mantsurov, I. G., Barvinok, A. S., & Stoletova, I. G. (2024). PARADOXES OF MONETARY POLICY PROVIDED BY THE NATIONAL BANK OF UKRAINE (OR, FOLLOWING HONORE DE BALZAC “SHINE AND POVERTY OF COURTESANS”). Baltic Journal of Legal and Social Sciences, 8-29. https://doi.org/10.30525/2592-8813-2024-spec-1
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Keywords
approaches, management, monetary and banking system of Ukraine, tools, monetary policy, National Bank, stability of the methodology
References
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2. Aiyagari, S., & Gertler, M. (1985). The backing of government bonds and monetarism. Journal of Monetary Economics, 16(1), 19–44.
3. Altavilla, C. (2003). Assessing monetary rules performance across EMU countries. International Journal of Finance and Economics, 8(2), 131–151.
4. Andrade, J. P., & Pires, M. C. D. C. (2011). Implications of public debt indexation for monetary policy transmission. Journal of Applied Economics, 14(2), 257–268.
5. Baskaran, T. (2009). Did the Maastricht treaty matter for macroeconomic performance? A difference-in-difference investigation. Kyklos by Wiley Blackwell, 62(3), 331–358.
6. Beetsma, R. M. W. J., & Jensen, H. (2005). Monetary and fiscal policy interactions in a microfounded model of a monetary union. Journal of International Economics, 67(2), 320–352.
7. Bianchi, F., & Ilut, C. (2017). Monetary/fiscal policy mix and agent’s beliefs. Review of Economic Dynamics, 26, 113–139.
8. Bohn, H. (1998). The behaviour of US public debt and deficits. Quarterly Journal of Economics, 113(3), 949–963.
9. Brzozowski, M., & Siwiska-Gorzelak, J. (2010). The impact of fiscal rules on fiscal policy volatility. Journal of Applied Economics, 13(2), 205–231.
10. Clausen, V., & Hayo, B. (2002, May). Monetary policy in the Euro area – Lessons from the first years (ZEI, Working Paper No. B09-2002).
11. Corsetti, G., & Pesenti, P. (2005). International dimensions of optimal monetary policy. Journal of Monetary Economics, 52(2), 281–305.
12. Díaz-Roldán, B.-R. O., & Esteve, C. (2009). Deficit sustainability and inflation in EMU: An analysis from the fiscal theory of the price level. European Journal of Political Economy, 25(4), 525–539.
13. Favero, C. (2002, June). How do monetary and fiscal authorities behave? (CEPR, Discussion Paper No. 3426).
14. Galí, J., & Perotti, R. (2003). Fiscal policy and monetary integration in Europe. Economic Policy, 18(37), 533–572.
15. Gerlach, S., & Schnabel, G. (2000). The Taylor rule and interest rates in the EMU area. Economics Letters, 67, 165–171.
16. Ghatak, S., & Moore, T. (2011). Monetary policy rules for transition economies: An empirical analysis. Review of Development Economics, 15(4), 714–728.
17. Godbillon, B., & Sidiropoulos, M. (2001). Designing fiscal institutions in a monetary union. Open Economies Review, 12(2), 163–179.
18. Haga, M. (2015). On central bank independence and political cycles. Journal of Applied Economics, 18(2), 267–296.
19. Huchet, M. (2003). Does single monetary policy have asymmetric real effects in EMU? Journal of Policy Modeling, 25(2), 151–178.
20. Kara, A., & Nelson, E. (2003). The exchange rate and inflation in the UK. Scottish Journal of Political Economy, 50(5), 585–608.
21. Kirsanova, T., Leith, C., & Wren-Lewis, S. (2006). Should central banks target consumer prices or the exchange rate? The Economic Journal, 116(512), F208–F231.
22. Lagoa, S. (2016). Determinants of inflation differentials in the Euro area: Is the new Keynesian Phillips curve enough? Journal of Applied Economics, 20(1), 75–103.
23. Leeper, E., & Davig, T. (2009, November). Monetary-fiscal policy interactions and fiscal stimulus (NBER Working Papers No. 15133).
24. Leith, C., & von Thadden, L. (2008). Monetary and fiscal policy interactions in a new Keynesian model with capital accumulation and non-Ricardian consumers. Journal of Economic Theory, 140(1), 279–313.
25. Mantsurov I. Post-War successful rehabilitation of Ukraine in the framework of Constitutional and Institutional Changes/ I. Mantsurov, D. Mantsurov// Modeling and Information Systems in Economics: Collection of Scientific Papers. Issue 91. K: KNEU, 2015. С. 36–44.
26. Mantsurov I.G. State Institutions for Regulating Social Development in Ukraine: Monograph / I.G. Mantsurov. “K: NDEI”, 2013. 315 с.
27. Monacelli, T. (2005). Monetary policy in a low pass-through environment. Journal of Money, Credit and Banking, 37(6), 1047–1066.
28. Panico, C., & Purificato, F. (2013). Policy coordination, conflicting national interests and the European debt crisis. Cambridge Journal of Economics, 37(3), 585.608.
29. Reinhart, C., & Rogoff, K. (2009). This time is different: Eight centuries of financial folly. Princeton, NJ: Princeton University Press.
30. Semmler, W., & Zhang, W. (2004). Monetary and fiscal policy interactions in the Euro area. Empirica, 31, 205–227.
31. Silva, C. G., & Vieira, F. V. (2017). Monetary and fiscal policy in advanced and developing countries: An analysis before and after the financial crisis. The Quarterly Review of Economics and Finance, 63, 13–20.
32. Smaghi, L., & Casini, C. (2000). Monetary and fiscal policy co-operation: Institutions and procedures in EMU. Journal of Common Market Studies, 38(3), 375–391.
33. Wolters, M. (2012). Estimating monetary policy reaction functions using quantile regressions. Journal of Macroeconomics, 34(2), 342–361.
34. Zellner, A. (1962). An efficient method of estimating seemingly unrelated relations and tests for aggregation bias. Journal of the American Statistical Association, 57, 348–367.
35. National Bank of Ukraine (2023). Retrieved from: https://bank.gov.ua/
36. State Statistical Service of Ukraine (2023). Retrieved from: https://ukrstat.gov.ua
37. International Monetary Fund (2023). Retrieved from: https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023
38. Federal Reserve, USA (2023). Retrieved from: https://www.frbservices.org
39. Ministry of Economy of Ukraine (2023). Retrieved from: https://www.me.gov.ua/?lang=en-GB
40. The World Bank Data Bank (2023). Retrieved from: https://databank.worldbank.org/
41. European Central Bank (2023). Retrieved from: https://www.ecb.europa.eu/stats/html/index.en.html
42. Eurostat (2023). Retrieved from: https://ec.europa.eu/eurostat