Growing discoordination between monetary and fiscal policies in Ukraine

Svitlana Mishchenko, Svitlana Naumenkova, Volodymyr Mishchenko, Viktor Ivanov, Roman Lysenko

Research output

1 Citation (Scopus)

Abstract

The slowdown in economic development caused by the reduction in the efficiency of the functioning of state institutions determined the focus of the governments of most countries of the world on achieving sustainable economic growth, as well as ensuring macroeconomic and macrofinancial stability. A major issue that is dealt with is the weakening of the interaction of monetary and fiscal policies in Ukraine. It can be assumed that one of the reasons hindering economic growth is growing discoordination between monetary and fiscal policies. The purpose of this study is to assess the nature of monetary and fiscal policies in Ukraine in 2000–2017 and justify the need for coordination between them to stimulate economic growth. For the quantitative assessment of the influence of monetary and fiscal factors on GDP, the models of autoregression with distributed lags – ARDL are used. The analysis makes it possible to distinguish and characterize three stages of combining the rigid and stimulating monetary and fiscal policy in Ukraine in 2000–2017. The article examines the influence of the dynamics of the monetary aggregate M3, the inflation rate and the weighted average base interest rate on the growth rates of real GDP in Ukraine, the impact of using the “monetary clamp” effect on the increase in the NBU’s interest rate, and the direct effect of monetary factors on the fiscal policy. The authors conclude that the inconsistency of monetary and fiscal policies is one of the reasons for the high volatility of macroeconomic indicators. The article substantiates the conclusion that it is necessary to overcome the increasing antagonism between monetary and fiscal policies in Ukraine and to strengthen their coordination.

Original languageEnglish
Pages (from-to)40-49
Number of pages10
JournalBanks and Bank Systems
Volume14
Issue number2
DOIs
Publication statusPublished - 1 Jan 2019

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fiscal policy
monetary policy
Ukraine
Economics
economic growth
interest rate
Clamping devices
macroeconomics
antagonism
Monetary and fiscal policy
inflation
efficiency
interaction
Economic growth
economics

Scopus subject areas

  • Finance
  • Organizational Behavior and Human Resource Management
  • Marketing
  • Management of Technology and Innovation
  • Law

Cite this

Mishchenko, Svitlana ; Naumenkova, Svitlana ; Mishchenko, Volodymyr ; Ivanov, Viktor ; Lysenko, Roman. / Growing discoordination between monetary and fiscal policies in Ukraine. In: Banks and Bank Systems. 2019 ; Vol. 14, No. 2. pp. 40-49.
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Growing discoordination between monetary and fiscal policies in Ukraine. / Mishchenko, Svitlana; Naumenkova, Svitlana; Mishchenko, Volodymyr; Ivanov, Viktor; Lysenko, Roman.

In: Banks and Bank Systems, Vol. 14, No. 2, 01.01.2019, p. 40-49.

Research output

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