Економічний вісник університету (Mar 2016)
Conceptual approaches to stabilization of money circulation in the crisis period
Abstract
The subject of the research is theoretical and practical aspects of monetary stabilization in Ukraine in the crisis period. The goal of the article is to develop conceptual approaches to monetary stabilization in the crisis period. Research methods. General scientific and special methods were used in the work, namely analysis and synthesis - to study trends in money circulation in Ukraine and the substantiation of the need for monetary stabilization; systematization and classification - to highlight the methods and instruments of monetary regulation for its stabilization; synthesis of results to make the conclusions. Results of the work. The article describes approaches to monetary stabilization, ensuring that the dynamics, structure and supply of the money meet the needs of economic development. The article proves that the increase of money circulation manageability by improving the structure of money supply (de-dollarization and stimulation of cashless payment methods for controlling the spread of payment innovation) is a necessary condition for stabilization of money circulation. Prudential approach should be taken as a methodological basis for monetary stabilization. According to this approach, it is crucial to concentrate all the efforts on forestalling of monetary imbalances by monitoring the least controllable factor - the velocity of cash flow, which depends on the share of liquid assets (primarily cash and foreign currency) in cash flow. Conclusions. Provided conceptual approaches to monetary stabilization include the development of monetary market mechanisms in Ukraine, and therefore are focused on ensuring full implementation of hryvna’s functions and increased manageability of money circulation. Their implementation will allow the National Bank to stabilize money circulation and effectively conduct monetary policy in Ukraine on this basis.
