Theoretical aspects of the monetary policy and its stabilization role in crisis conditions

Posmitna Maryna
Postgraduate Student of Banking Department, Odessa National Economic University, Ukraine, e-mail: posmitnam@gmail.com, ORCID ID: https://orcid.org/0000-0003-0154-5048

Cite this article:

Posmitna, M. (2022). Theoretical aspects of the monetary policy and its stabilization role in crisis conditions [Teoretychni aspekty monetarnoi polityky ta yii stabilizatsiina rol v umovakh kryzy], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 1-2 (80-81), pp. 110-121.

Abstract

The article investigates the theoretical aspects of a monetary policy and its role in the stabilization processes of the country. It was considered advantages and disadvantages of the main monetarist’s theories, which were formed and implemented during the 20th century. The subject of this article is a monetary policy of the central bank; the aim is to analyze the most common theories of monetary policy for its effective implementation. Such general scientific methods as: generalization, classification, analysis and synthesis are used in this research. The role of different methods in the implementation of the monetary policy by central banks is determined. The world experience of introducing certain types of monetary policy for overcoming the crisis is considered, as well as the consequences of their use are outlined. Numerous theories of monetary policy are analyzed, as well as their implementation in the legislative framework of Ukraine is shown. The modernization stages of the state banking system for the further introduction of the inflation targeting are presented. The practical experience of developed countries of the world regarding the introduction and effective implementation of inflation targeting, and using of the key rate of the central bank as its main tool is analyzed. The research results determine the relevance of studying the theoretical aspects of the central bank’s monetary policy, because economic processes are currently very dynamic, and current theories can only partially answer the questions posed. The theoretical study of the formation and implementation of monetary policy in wartime deserves special attention. It is additionally outlined that the formation and usual modification of the essence of monetary policy are influenced by the presence of other ways of the central bank’s regulations. Thus, the study of monetary and macro prudential policies, as well as their general coordination, are important directions of further scientific research.

Keywords

monetary policy; key rate; inflation targeting; central bank; floating exchange rate; monetarism; money supply.

JEL classification:E120; Е500; E520; DOI:https://doi.org/10.33987/vsed.1-2(80-81).2022.110-121

UD classification: 336.7:330.1

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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