MONETARY POLICY: REGULATORY NEWS AND CHANGE IN THE MOVEMENT OF FINANCIAL FLOWS

Abstract

The article deals with the issues of formation and implementation of monetary policy. The peculiarities of implementation of monetary regime of inflation targeting in Ukraine and in other countries are defined. The growing role of central banks in ensuring price and financial stability and supporting economic growth is justified. The modern possibilities of realization of the main function in the activity of the National Bank of Ukraine are revealed. The importance of adhering to the interconnected goals of monetary policy is justified. It is determined that the controlled movement of financial flows and price stability can only be ensured at the same time as financial stability in the context of economic growth. The role and dynamics of the discount (key) rate in the implementation of the inflation targeting regime is revealed. In the presence of measures of state stimulation of business activity, the directions and intensity of movement of financial flows change. It is justified that central banks should have enhanced institutional and instrumental capabilities to prevent the risks of destabilization. This is ensured by cooperation with the government in the implementation of monetary policy. It is proved that in order to further stabilize the markets it is necessary to implement in monetary policy not monetary «solo», but monetary «mix» of the central bank-government.

Keywords

• monetary policy
• monetary mode
• inflation targeting
• financial flows
• central bank
• government