CHALLENGES OF GLOBAL INSTABILITY IN THE MONETARY SPHERE

Abstract

Introduction. Under the influence of several waves of the consequences of the Global Financial Crisis of 2008, the COVID-19 pandemic in 2020 and the full-scale military conflict in Europe, the classical approaches to determining the goals and instruments of monetary policies in different countries of the world have undergone a significant transformation. This is manifested in the retreat from the priority of the inflation target, the expansion of the monetary supply with a gradual reorientation towards targeted financing programs for economic development.

The purpose of the article is to single out important factors that lead to the transformation of monetary policy approaches of the countries of the world and to determine the prospects for the further development of monetary policy and to propose possible measures for Ukraine.

Materials and methods. In paper have been used methods of system-functional, historical-logical and comparative analysis, methods of scientific generalization, induction and deduction. The theoretical and methodological basis of the article was made up of the works of the classics of monetarist regulation, the informational basis – statistical materials of international financial organizations and institutions (IMF, BIS, World Bank), methodological and regulatory materials of the National Bank of Ukraine for the period 2008-2022.

Results and discussion. The need to increase the effectiveness of monetary policy in the face of global challenges of financial instability is caused by such factors as the limitation of the effectiveness of monetary policy in conditions of close to zero interest rates, the growth of cross-border capital flows, debt burden and sudden changes in inflation trends.

Conclusion. The analyzed trends in the course of processes in the financial system under the influence of the identified factors highlighted the development of monetary policy. The direction of the transition is due to the use of expanded instruments, in particular targeted refinancing and reserve standards, control over international capital flows embodied in the framework of macroprudential regulation, as well as the corresponding interaction of the monetary regulator with fiscal authorities.