THE ROLE OF MONETARY POLICY IN THE SYSTEM FOR ENSURING THE FINANCIAL STABILITY OF THE STATE

Abstract

This article examines the role of monetary policy in the system that ensures the financial stability of the country. Monetary and credit policy is an important part of the economic policy of the National Bank, which is aimed at ensuring price stability, creating appropriate conditions for the economic growth and development of the country, and increasing the level of employment of the population. Ensuring the stabilization of the national economy requires the implementation of a set of measures aimed at managing individual elements of economic development. The implementation of a successful monetary policy and its impact on national economic security depends on the achievement of tactical, medium-term and final goals. Among the main directions of monetary policy, the following final goals can be identified, which are directly related to the level of national economic security: growth of real production, moderate expected inflation, balance of international payments, maximum employment. The main tools of wartime monetary policy are defined and the necessity of implementing wartime monetary policy is revealed. War always causes significant damage to the economic and financial stability of the country. One of the most striking consequences of this is the strong inflationary pressure in Ukraine after Russia’s military aggression. This economic indicator seriously affected the life of the population and the general economic development of the country. The priorities of the monetary policy of the National Bank of Ukraine during the war years are the maximization of Ukraine’s defense needs and the reliable functioning of financial markets, ensuring the smooth operation of the banking and payment systems, curbing inflation and maintaining the economic stability of the hryvnia, and ensuring the necessary level of international reserves. The facts confirm that monetary policy is a catalyst for ensuring the country’s financial security and plays an important role in this process. The economic difficulties that Ukraine will face after the war require a number of measures to ensure macroeconomic stability and prevent panic. These measures need to be studied in detail in future studies.