COORDINATION OF FISCAL AND MONETARY POLICIES

Abstract

Introduction. The questions of the coordination of fiscal and monetary policies for ensuring stable social and economic development are under constant attention of the scientists and practitioners. Attention to such coordination increases in extreme conditions due to military operations, economic and financial problems, pandemics. As such an important scientific task is the search for the ways of ensuring the optimal coordination of the fiscal and monetary policies. Problem Statement. The character, regularities and specific, the tools for coordinating the fiscal and monetary policies in relation to the specifics of their creation and realization in the country. Purpose. To define the regularities and specifics of the coordination of the fiscal and monetary policies in different conditions of their creation and realization and to develop the recommendations on improvement of such coordination. Methods. The methods of decomposing and generalizing, logical, situational and factor analysis, analogies, expert opinions, conceptual modelling are used. Results. The importance of the justified coordination of the fiscal and monetary policies is proved based on the analysis of the theories, foreign and local practices. The regularities and specifics of the realization of such coordination in different countries in general and in crisis periods in particular are defined, ways of increasing its efficiency/effectiveness are determined. Conclusions. Effective coordination of fiscal and monetary policies can be supported by the efficient selection of the tools for its realization, substantiation of the conceptual provisions for the coordination of this policy in relation to the cyclicity of the economy/current challenges, the development of the respective programs, “road maps” designed by ministries and authorities, legislative and regulatory acts which clearly define ways of the cooperation, procedures and mechanism of the coordination, roles and responsibilities, systematic inter-ministries exchange of information, timely informing of the society, professional consultancy, synchronization of the measures on fiscal, cash and credit, foreign exchange regulation, anti-inflation NBU and government policy with the macroeconomic and structural policy of the country.