SYSTEMIC MODEL OF MONETARY REGULATION IN UKRAINE
Authors:   Taras Shevchenko National University of Kyiv, Kyiv, Ukraine, KHODZHAIAN Аlina , KALYUZHNA Nataliya ,   State University of Trade and Economics (Kyiv) Ukraine
Published: August 2024

Background. The enhancement of effectiveness in regulating the financial and real sectors of the economy through monetary policy is achieved by the coordinated functioning of all components of its regulatory mechanism. Recognizing the systemic principles of monetary processes requires further development and generalization of monetary regulation in the form of a detailed model that should be built on understanding the general nature of this process and accounting for the specifics of its course in Ukraine under martial law conditions. Therefore, the purpose of the study is to develop a systemic model of monetary regulation in Ukraine based on the systematization of theoretical and methodological principles and organizational-management aspects of implementing the state's monetary policy, as well as substantiating criteria for its effectiveness. Methods. To achieve the set goal, the study used methods of induction (to form an inductive generalization regarding the systemic essence of the monetary regulation process), analysis and synthesis (when considering the instruments, goals, and results of the monetary policy of the National Bank of Ukraine), abstraction and generalization (to identify general and specific systemic characteristics of the monetary regulation process in Ukraine), graphical modeling (to form a systemic model of monetary regulation in Ukraine), and mathematical modeling (to substantiate the performance criterion of the systemic model of monetary regulation.) Results. The proposed systemic model of monetary regulation was developed taking into account both the essence of monetary policy aimed at ensuring price stability, and the specifics of its implementation in the state, which is determined primarily by the state and the dynamics of critical indicators of achieving monetary goals. The key elements of the model are defined taking into account the impact of the russian military aggression, the consequences of which were reflected by the critical deviation of the key indicators of monetary policy (primarily, consumer inflation and the discount rate) from the predicted values. The development of the model of monetary regulation in Ukraine confirmed the expediency of considering this process from the point of view of a systemic approach, which assumes the existence of elements traditional for the management system: subjects and objects of regulation, goals, tools, and indicators of their achievement. The crucial role of transmission channels in achieving the state's monetary policy goals is substantiated for developing a systemic model of monetary regulation in Ukraine . Taking into account the effectiveness of the influence of monetary regulation instruments on the financial and real sectors of the national economy, the transmission mechanism of monetary policy is defined as the central element of the systemic model of monetary regulation in Ukraine. Conclusions. The systemic model of monetary regulation proposed in the work was developed considering both the essence of monetary policy, aimed at ensuring price stability, and the specifics of its implementation, determined primarily by the state and dynamics of key indicators showing the achievement of monetary objectives. The key elements of the model were specified taking into account the impact of russian military aggression, which resulted in critical deviation of crucial monetary policy indicators (primarily, consumer inflation and the discount rate) from the predicted values. The development of the model of monetary regulation in Ukraine has confirmed the expediency of considering this process from the standpoint of a systemic approach that assumes the presence of elements traditional for the management system: subjects and objects of regulation, goals, tools and indicators of their achievement. In developing a systemic model of monetary regulation in Ukraine, the study also substantiates the key role of transmission channels in achieving the goals of the state's monetary policy. With regard to the effectiveness of the monetary regulation instruments on the financial and real sectors of the national economy, the transmission mechanism of monetary policy is defined as the central element of the systemic model of monetary regulation in Ukraine.