IMPACT OF GLOBAL TRENDS ON UKRAINE'S MONETARY POLICY

Abstract

Monetary policy is the most important tool of influencing the economy by means of monetary levers. The main goal of the policy is price stabilization, achievement of inflation targets and full employment of the population. Currently, there are a number of objective limitations to the effectiveness of traditional instruments of the transmission mechanism (such as inflation targeting in its classical form), which makes it necessary to compensate for them with other instruments of monetary influence. World experience shows that monetary policy has a short-term successful impact on the economy. The purpose of the article is to determine the content of monetary policy, assess modern monetary instruments of influence on the country's economy. The article also identifies global trends that dictate the rules of monetary policy and affect its main indicators. Findings. The key aspects of building the monetary policy of the National Bank, as the main regulator of economic processes in the country, are analyzed. The types and channels of monetary policy implementation are considered and systematized, and the sequence of application of individual monetary regulation instruments is characterized. Objective economic prerequisites under which the NBU was forced to resort to the use of new instruments of monetary regulation are identified. The trends that emerged during the financial and pandemic crises, as well as military operations, and made it necessary to change the position of the National Bank on regulatory instruments, are specially analysed. In particular, the main instrument of monetary policy in Ukraine is defined as currency interventions, while the stabilization tool for ensuring a sustainable reduction in inflation is the preservation of exchange rate stability. The influence of global trends on the country's macroeconomic indicators is analyzed and changes in monetary indicators are determined. Conclusions. Based on the results of the study, the need to expand the powers of national banks for monetary regulation and the optimal combination of traditional and non-traditional tools for rapid response to factors of development of foreign markets is justified. Overcoming the current crisis state provides for further expansion and optimization of monetary regulation tools available to the NBU.