Keywords
crisis
interest rate
mechanism
transmission
monetary policy
How to Cite
Abstract
The subject of the article is the practical aspects of improving the transmission mechanisms of the interest rate policy of the National Bank of Ukraine during the period of structural “shocks”. The purpose of the article is to highlight approaches to developing an interest rate transmission mechanism in monetary policy that can eliminate or mitigate negative phenomena in financial markets, increase domestic production, and stabilize inflation during periods of structural shocks and uncertainty. Based on a systems analysis and dialectical approach, a scientific approach to developing the interest rate transmission mechanism has been investigated, which is based on its understanding as a set of tools, methods and processes that ensure the transmission, transfer or spread of the impulse from changes in the central bank's interest rate on economic activity, supply and demand in the economy, investment and inflation expectations, playing a key role in regulating macroeconomic equilibrium. The development of conceptual principles of the interest rate transmission mechanism during periods of structural shocks is proposed, which consist in formalizing the theoretical, methodological and practical levels of the floating key rate policy through the impact of its change on supporting economic growth and maintaining price stability. Unlike existing views in science, the developed provisions are based on methodological approaches to assessing the impact of the first manifestations of a structural shock on expectations and monetary targets and the impact of the key rate on monetary targets during the post-crisis recovery period. The results of the study of the theoretical, methodological and practical levels of the floating key rate policy, which consists in the impact of its change on supporting economic growth and maintaining price stability, can be used to improve the transmission mechanisms of the interest rate policy of the National Bank of Ukraine during periods of “shocks”. Based on the results of the study, it was concluded that the objectives of the central bank's monetary policy during periods of structural shocks should be comprehensive and simultaneously aimed at supporting economic growth and maintaining price stability, and the interest rate transmission mechanism should have an effective impact on the specified targets. Obviously, the stated goals should not be long-term but should take into account the stage of the crisis, adhering to certain strategies for regulating the key rate, creating the basis for forming informed decisions in macro- and microprudential policies, exchange rate regulation policies and currency interventions, broad communication and transparency, as well as fiscal and monetary coordination of the central bank.
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