Monetary security of the national economy in the conditions of growing uncertainty and risks of mistrust
Authors:   SI ", GRYTSENKO Andrij ,   Institute for Economics and Forecasting of NAS of Ukraine"
Published: August 2023

Introduction. The growing uncertainty of financial and economic dynamics leads to changes in the level of trust in subjects and institutions of the monetary sphere, which undermines the foundations of stability and provokes crises. This forces us to look for new approaches to ensuring the stability of the monetary unit and monetary security. Problem Statement. The main problem is the lack of scientific knowledge regarding the mechanisms of the impact of growing uncertainty and mistrust on the behavior of business entities, and the monetary sphere, which is especially sensitive to such changes, to find effective means of counteracting the negative impact of these processes and maintaining monetary security. Purpose. To identify a basic tool for ensuring confidence and monetary security, which could become the basis for building a safe monetary system in conditions of growing uncertainty and risks of increasing the level of mistrust associated with pandemics, crises, military actions and other destabilizing factors. Methods. The research is based on the application of the method of ascent from the abstract to the concrete, which combines logical operations, theoretical reproduction and ascent to find out directions of the practical implementation of the obtained theoretical results. Results. The relationship between trust and monetary stability and its features in conditions of growing uncertainty and risks are revealed. The internal structure of trust and its external manifestations in trust in subjects, institutions and objects are clarified. The approach to the interpretation of monetization is substantiated, which made it possible to distinguish between inclusive and segregative monetization. The use of the regime of targeting the stability of the monetary unit in conditions of growing uncertainty and risks is proposed and its content is disclosed. Conclusions. The growth of uncertainty significantly affects the dynamics of trust and its relationship with macroeconomic, monetary and fiscal parameters. An important role in maintaining the trust of the population and business entities in the conditions of increased risks and uncertainty of economic development is played by the actions of power structures, in particular, the monetary authority. Even the growing general disproportionality of the economy can be combined with the preservation of trust, if the economic parameters directly affecting people's lives remain relatively stable, and the authorities demonstrate to society the ability to control the situation. In order to ensure monetary stability and security, monetization, which must be inclusive and not segregative, is essential. An adequate basic tool for ensuring trust and monetary security in the conditions of growing uncertainty and monetary and fiscal risks is the unfolded targeting of the stability of the monetary unit, in which inflation (internal stability) is controlled in relation to the dynamics of the exchange rate (external stability).