COMPETITIVE DEPRECIATION. A GLOBAL OBSTACLE TO MONETARY REGULATORY TASKS’ CONSENSUS

Abstract

At the current stage of development of global economy and international economic relations, certain disputes over the goals of regulatory framework on international economic activity may arise. Such regulatory objectives of domestic monetary authorities as promoting the global competitiveness of domestic producers, may contradict the regulatory objectives international monetary authorities. One of such contradictions is competitive depreciation, the concept of which is defined, in particular, by the Articles of Agreement of the International Monetary Fund. The issue of competitive devaluation as a theoretical phenomenon has been studied by such foreign scholars as P. Bergin, D. Corsetti, D. Li, G. Lima, D. McCombie, R. Ribeiro, A. Rodnianski, S. Xiao, L. Tang, Y. Tervala, S. Zhou; among the domestic scholars whose works are devoted to this topic, we can distinguish O. Vinogradova, V. Holiuk, V. Dergachova, M. Kravchenko, Z. Lutsyshyn, N. Reznikova and others. This article analyzes the modern theoretical foundations of domestic currency depreciation as a way to promote gains of competitive advantages on global markets by domestic producers. The purpose of the study is to determine the fundamentals of monetary regulation on which available to monetary authorities mechanisms of influencing the domestic monetary system may simultaneously contribute to gains of global competitive advantages by domestic producers and cause the domestic currency depreciation. The main areas of regulatory activity of domestic monetary authorities that need to be modernized, namely, the mechanism for regulating the money supply in order to facilitate the acquisition of competitive advantages by national producers in world markets have been identified in this article.