ABROAD EXPERIENCE OF MONETARY POLICY OF CENTRAL BANKS DURING THE WAR

Abstract

The article examines the experience of conducting monetary policy of central banks during the war in different countries of the world, depending on the monetary management system. Solving the problems of the functioning of the state's economy during military operations and in the period of post-war reconstruction is an urgent scientific and practical task. The main lever for ensuring the sustainable development of the economy is the flexible monetary policy of the state. The ability of the state to mobilize financial resources, maintain its own currency and continue to lend to the economy are among the main factors of victory and subsequent post-war recovery. It has been established that in the vast majority of countries, the main principle of modern monetary policy is to ensure price stability. Price stability, aggregate demand, credit and investment activity, economic growth, and therefore the readiness of the economy to resist external aggression depend on the effectiveness of monetary policy. It is outlined that one of the main prerequisites for the successful application of the chosen monetary policy of the state is to take into account the current economic situation in the country and to develop such instruments of monetary influence on economic processes that would maximally take into account national specificities and neutralize the influence of negative factors on the transmission channels of monetary regulation.

Keywords

• monetary policy
• war
• National Bank of Ukraine
• inflation
• discount rate
• price stability