Scientific Bulletin of Mukachevo State University. Series “Economics”

Vol. 3, No. 2, 2016 open access Open access

Monetary Principles of Financial Stability: World Experience and Ukraine

Nataliya Hladynets

Pages 163 –168 Views 857 Views

Abstract

Ensuring financial stability is a key issue of central banks of developed and developing countries. Changing market conditions necessitate continuous development and improvement of monetary regulation in accordance with fluctuations, phases of business activity, inflationary bursts. This determines the importance of the study of global trends of monetary regulation during the crisis and its possible application in Ukraine. The aim is to deepen the scientific principles of securing and maintaining financial stability with monetary levers, to identify existing problems and developing appropriate modern realities of ways and methods of monetary regulation of financial stability. The subject of research is the process of monetary financial stability in Ukraine and foreign countries. For realization of tasks method of abstraction, structural and logical, economic and statistical analysis and comparative method have been used. Foreign experience of monetary regulation has been investigated, which focuses on inflation targeting regime both in developed countries and in developing countries. The analysis gives reason to claim the effectiveness of monetary policy implemented by the central banks of industrialized countries. It has been proved that the introduction of inflation targeting regime in the practice of monetary regulation is directly connected with the main task of central banks – providing and maintaining stability of the national currency. The results of the study allow suggesting that the monetary policy of the central banks of developed countries aimed at maintaining low inflation and establishing stable and predictable target price targets. The experience of economically developed countries has shown that the best way to boost confidence in the value of money and ensure financial stability and high rates of social and economic development, increase confidence in the national currency is to maintain low inflation. Scientific novelty of research results is determined by reasonable proposals for ensuring financial stability and a high level of social and economic development with the use of monetary measures. The practical significance of the study results is the possibility of their introduction into the national practice of monetary regulation in Ukraine.

Keywords

monetary policy, monetary authorities, central bank monetary trends in global regulation, inflation targeting, inflation rate, discount rate, financial stability.

References

References in the process of publication

Suggested citation

Hladynets, N. (2016). Monetary Principles of Financial Stability: World Experience and Ukraine. Scientific Bulletin of Mukachevo State University. Series “Economics”, 3(2), 163-168.