Monetary Measures of Macroeconomic Regulation of the National Economy

Abstract

Monetary policy occupies one of the key positions in macroeconomic regulation, on the effective implementation of which the stability of economic growth, the reduction of unemployment to natural levels etc. The purpose of the study is to identify the results of the practical application of the monetary theory's theoretical generalisations for the use of effective monetary policy instruments in Ukraine under conditions of socioeconomic instability and weak inclusive institutions of national economy development. The study systematises the main vectors of monetary policy improvement and possibilities of its adjustment. By analysing the key aspects of the institutional framework for monetary regulation under conditions of financial instability, it is established that, in coordinating fiscal and monetary policy, the independence of the central bank should be the primary condition for the construction of an optimal macroeconomic policy. The results of the study underline: price stability should be a prerequisite for the resumption of lending and economic activity after the recession caused by the cyclical crisis exacerbated by the COVID-19 pandemic. The results obtained provide insight into the current state and prospects of developing monetary policy in Ukraine, which in turn should be oriented not towards matching the exchange rate parameters with the volume of domestic government bonds issue (DGBs), but towards ensuring strict fiscal measures aimed at overcoming the effects of the budget crisis and achieving macroeconomic balance.