Research output: Contribution to journal › Article › peer-review
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: Contribution to journal › Article › peer-review
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TY - JOUR
T1 - Growing discoordination between monetary and fiscal policies in Ukraine
AU - Mishchenko, Svitlana
AU - Naumenkova, Svitlana
AU - Mishchenko, Volodymyr
AU - Ivanov, Viktor
AU - Lysenko, Roman
PY - 2019/1/1
Y1 - 2019/1/1
N2 - 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.
AB - 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.
KW - Central bank
KW - Economic growth
KW - Monetary-fiscal policy coordination
KW - Ukraine
UR - http://www.scopus.com/inward/record.url?scp=85066856273&partnerID=8YFLogxK
U2 - 10.21511/bbs.14(2).2019.04
DO - 10.21511/bbs.14(2).2019.04
M3 - Article
AN - SCOPUS:85066856273
VL - 14
SP - 40
EP - 49
JO - Banks and Bank Systems
JF - Banks and Bank Systems
SN - 1816-7403
IS - 2
ER -
ID: 42913281