Specific of transmission mechanism of monetary policy in Ukraine in the conditions of martial law

Abstract

Introduction. The current state of the Ukrainian economy is determined by the unfolding of crisis as a result of full-scale military aggression, which determines the need to optimize the regulatory influence of monetary policy in order to ensure the stability of the economy against the negative consequences of the war, minimize and localize the impact of the negative consequences of the crisis for the real sector of the economy. Under such circumstances, the study of problems related to the choice of the most optimal monetary policy strategy, which is implemented in practice through the appropriate channels of monetary transmission, which operate on the basis of the selected targeting regime, is especially relevant. At the same time, military actions determine the need to reassess the system of economic coordinates, in which the central bank, defending its institutional independence, could focus monetary regulation exclusively on price stability, ignoring other strategic goals of state influence on the economy, related to the urgent need to save economic activity and prevent unfolding recession precisely with the help of monetary policy instruments. Goal. The purpose of the study is to find out the features of practical implementation and to identify problematic aspects of the transmission mechanism of monetary regulation, as well as to determine on this basis the most optimal channels of monetary transmission, suitable for use in conditions of martial law, external shocks and the unfolding of the economic crisis. Methodology. General scientific techniques and tools, methods of analysis and synthesis, comparison, summary and grouping, scientific abstraction are used. The results. The article examines the action of the main monetary transmission channels and their impact on key macroeconomic parameters. The features and effectiveness of the transmission mechanism of monetary policy in the conditions of unfolding economic crisis during the period of martial law are analyzed. Problematic aspects of the practical implementation of the channels of monetary policy transmission mechanism have been identified. The fallacy of certain actions of the NBU regarding use of interest rate channel and inflation targeting regime while rejecting the exchange rate stability is emphasized. The advantages of using the exchange rate channel as more effective in the system of central bank transmission of monetary impulses to the economy in order to achieve the goals of financial stabilization, maintenance of economic growth and employment are substantiated.