Abstract:
Thesis for the degree of candidate of sciences by speciality 08.00.08 – money, finance and credit. – Lviv state academy of finance, Lviv, 2011.
Effectiveness of monetary regulation as an instrumental tool of attaining macroeconomic equilibrium of income and balance-of-payments in the former Soviet Union countries, including Ukraine, and a group of the Central and East European (CEE) countries is explored. Based on the analysis of monetary develop-ments and synthesis of well-known theoretical models, approaches for explaining of the remonetization of transition economies are elaborated, with a focus upon monetary policy issues in Ukraine. Within the theoretical framework of a dynamic portfolio model with rational expectations, the phenomenon of the so-called mone-tary hangover and it subsequent crisis-induced resolution are explained. The statisti-cal model of monetization and money supply effects upon income and the balance-of-payments is proposed, explaining a weaker relationship between money and inflation by the trade balance leakages, as well as such determinants of monetization, as the budget balance, exchange rate, openness of the economy and capital flows. Macroeconomic effects of such integral measure of the quality of mo-netary policy, as the Heritage Foundation index, are estimated. The monetization-real exchange rate relationship is recommended as a useful guide for monetary policy during stabilization episodes. Applied policy recommendations for the NBU monetary policy are made.
