THE IMPACT OF FINANCIAL AND ECONOMIC FACTORS ON HOUSEHOLD INCOME IN THE PRE-WAR AND WAR PERIODS

Author:

Tymots MyroslavaORCID,Ivashkiv TarasORCID,Fedyk LidiiaORCID,Horbatiuk OleksandrORCID,Stakhiv HryhoriiORCID

Abstract

The article analyzes the state of household income and consumption in Ukraine in peacetime and wartime. The role of financial resources of the population in the financial system of the state is substantiated. It is proved that income plays a crucial role in the formation of the financial potential of the population. The impact of the war on the financial resources of the population and the volume of its savings is investigated. Directions for optimizing the formation of household income are proposed. The influence of the NBU monetary policy on the financial activity of households is analyzed. It is found that the relationship between the interest rate and the level of income, expenses, deposits and cash investments is weak. This is confirmed by the correlation and dispersion coefficients. In particular, the value of the correlation coefficient between the growth rate of the NBU discount rate and the average wage in 2021-2023 did not exceed 0.09. Such a weak impact of the NBU's interest rate can be explained by price stickiness, wage stickiness and the basic principles of the HANK model.

Publisher

FinTechAlliance

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