Currency crisis: the essence, causes and consequences in Ukraine

Ruzanna Arutyunyan
PhD in Economics, Associate Professor, Department of Banking, Odessa National Economic University, E-mail:ruzaodessa@gmail.com

Svetlana Arutyunyan
PhD in Economics, Associate Professor, Department of financial management and stock market, Odessa National Economic University, E-mail:svitlar1950@mail.ru

Elena Itygina
PhD in Economics, Associate Professor, Department of financial management and stock market, Odessa National Economic University, E-mail:itangenn@gmail.ru

Cite this article:

Arutyunyan, R., Arutyunyan, S., Itygina, E. (2015), Currency crisis: the essence, causes and consequences in Ukraine. Ed.: M. Zveryakov (ed.-in-ch.) and others [Valiutna kryza: sutnist, prychyny ta naslidky v Ukraini; za red. M. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin (ISSN 2313-4569), Odessa National Economic University, Odessa, Issue 3, No. 58, pp. 242–247.

Abstract

The article deals with the theoretical approaches to defining the essence of currency crises, forms of currency turmoil, the classification of currency crises. Positive and negative socio-economic consequences of devaluation processes in the theoretical aspect and in the modern practice of Ukraine are defined. Particular attention is paid to the main imbalances the economy of Ukraine as a currency crisis cause, among which are financial deficit NAK «Naftogaz of Ukraine», economy’s hyperfinancialization, a huge amount of printing hryvnia of NBU, imbalances in the State budget and balance of payments and other. The conclusion about the need for government-controlled financial stability, without which change and reform in Ukraine will not be effective, is made.

Keywords

currency crisis; devaluation; the imbalances of the economy; hyperfinancialization; financial stabilization.

JEL classification: G230, G240, G250

UD classification: 339.747(477)

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