CENTRAL BANKS MONETARY MEASURES IN SUPPORT of THE ECONOMY IN A PANDEMIC CONDITIONS

Authors

  • Oksana Shchurevych
  • Oksana Kalyniv

DOI:

https://doi.org/10.25264/2311-5149-2021-20(48)-125-132

Keywords:

monetary policy, key interest rate, traditional monetary policy instruments, liquidity of the banking system, interest rate swap.

Abstract

The banking sector is an important regulator of economic processes in the country. It is through the conduct of effective monetary policy that its positive impact on economic growth is achieved. The global economic crisis caused by the spread of the COVID-19 pandemic has forced central banks to change their strategic approaches and take innovative measures to tackle the difficult economic situation.
The aim of the article lies in a detailed overview of monetary measures used by central banks to overcome the effects of the crisis, in particular the following countries were selected for analysis: Croatia, Serbia, Georgia, Poland, Romania and Hungary and their adaptation to the banking sector of Ukraine.
The central banks of many countries have faced the problem of overcoming the consequences of the crisis, and the list of monetary instruments to minimize it has gradually been exhausted. This applies to traditional instruments, which include lowering the key interest rate. That is, the ability of central banks to support the economy through low interest rates and cheap credit has declined. Therefore, the list of monetary measures was supplemented by non-traditional measures, such as quantitative easing, credit easing, targeted refinancing, etc. In general, the surveyed countries and their central banks coordinated their efforts to support the banking sector, ensure financial stability, and support the situation in the foreign exchange market.
The National Bank of Ukraine also responded fairly quickly to the beginning of the crisis with effective measures. Initially, the key interest rate was reduced to 6% and the situation on the foreign exchange market was stabilized. The next step of the central bank was the introduction of long-term refinancing and interest rate swaps. That is, an integrated approach aimed at: increasing the availability of credit resources in the economy, which will help restore economic growth; maintaining financial stability; ensuring uninterrupted payments in the system. Thus, considering the experience of foreign countries in applying measures to combat the effects of the pandemic on the economy, it should be noted that the use of traditional monetary instruments could not provide the positive effects that countries sought to obtain. Therefore, more unconventional instruments have been introduced in practice, the disadvantage of which is the inability to accurately predict their impact on the economy. For the situation in the Ukrainian banking sector, it will be more effective to continue using traditional instruments, in particular the key interest rate, as the potential for its use remains quite significant.

How to quote:


Shchurevych OI, Kalyniv OY Monetary measures of central banks to support the economy in a pandemic. Scientific notes of the National University
"Ostroh Academy". Series "Economics": a scientific journal. Jail: View
NaUAA, March 2021. № 20 (48). Pp. 125–132.

Formula: 0; fig .: 1; tab .: 1; bibl .: 21.

Link:


1. Adamik BP Central Bank and monetary policy: a textbook. Kyiv: Condor, 2011. 416 p.
Adamyk B Tsentralnyi bank i hroshovo-kredytna polityka. Kyiv: Kondor, 2011. 416 p. [in Ukrainian]
2. Glushchenko SV Monetary policy: theoretical and methodological aspects: a textbook. Kyiv, 2017. 64 p.
Hlushchenko SV (2017). Monetary policy: theoretical and methodological aspects. Kyiv. 64 s. [in Ukrainian]
3. Grublyak OM, Shkrumelyak NI Economic essence and main problems of monetary policy
NBU in modern conditions. Young scientist. 2018. № 10. S. 765–769.
Hrubliak, O.M., Shkrumeliak, N.I. (2018) Ekonomichna sutnist ta osnovne problemy hroshovo-kredytnoi polityky
NBU v suchasnykh umovakh [Economic situation and main problemsof the NBU money-credit policy in modern
conditions]. Molodyi vchenyi - Young Scientist, 10, pp. 765-769 [in Ukrainian]
4. Dzyublyuk OV, Zabchuk GM The effectiveness of the monetary impact of the central bank on credit incentives for production. Finance of Ukraine. 2012. № 7. S. 17–27.
Dziubliuk, OV, Zabchuk, H.M. (2012) The Effectiveness of the Monetary Influence of the Central Bank on Credit
stimulation of the development of production [Efficiency of the monetary influence central bank on credit-stimulation of
production development]. Finansy Ukrainy - Finance of Ukraine, 7, pp. 17-27 [in Ukrainian]
5. Inflation report of the National Bank of Ukraine. January 2021 URL: https://bank.gov.ua/admin_uploads/
article / IR_2021-Q1.pdf? v = 4 (access date: 20.02.2021).
Infliatsiinyi zvit Natsionalnoho banka Ukrainy. [Inflation Report]. Available at: https://bank.gov.ua/admin_uploads/
article / IR_2021-Q1.pdf? v = 4 [in Ukrainian].
6. Krupka MI, Andrushchak EM, Paitra NG Banking system: a textbook. Lviv, 2013. 556 p.
Krupka, M.I., Andrushchak, Ye.M., Paitra, N.H. (2013). Banking system: pidruchnyk [Banking system]. Lviv.
556 s. [in Ukrainian]
7. Krupka MI, Andrushchak EM, Paitra NG Central Bank and monetary policy: a textbook.
Lviv, 2017. 526 p.
Krupka, M.I., Andrushchak, Ye.M., Paitra, N.H. (2017). Tsentralnyi bank i hroshovo-kredytna polityka [Central
Bank and Monetary Policy]. Lviv. 526 s. [in Ukrainian]
8. Mishchenko V., Mishchenko S. Improving the channels of the transmission mechanism of monetary policy
in Ukraine in the transition to inflation targeting. Current economic problems. 2015. № 1 (163). Pp. 421–428.
*
According to official data of the NBU.
Mishchenko V., Mishchenko S. (2015) Improvements in the transmission channels of the chroshovo-kredytnoi transmission mechanism
policy in Ukraine in the conditions of transition to inflation targeting [Enhancing The Effect Of Transmission Channelsin
Monetary Policy Of Ukraine Under The Transitionto Inflation Targeting]. Current economic problems - Actual
Problem of Economics, 1 (163), pp. 421-428
9. Official site of the International Monetary Fund. URL: https://www.imf.org/en/Home (access date:
20.02.2021).
Ofitsiinyi sait Mizhnarodnoho valiutnoho fondu. [Official website of the International Monetary Fund]. Available at:
https://www.imf.org/en/Home [in English]
10. Official site of the National Bank of Ukraine. URL: http://www.bank.gov.ua/ (access date: 20.02.2021).
Ofitsiinyi sait Natsionalnoho banka Ukrainy. [Official website of the National Bank of Ukraine]. Available at: http: //
www.bank.gov.ua/ [in Ukrainian].
11. Official site of the Central Bank of Georgia. URL: https://www.nbg.gov.ge/index.php?m=2 (access date:
10.01.2021).
Ofitsiinyi sait tsentralnoho banku Hruzii. [Official website of the National Bank of Georgia]. Available at: https: //
www.nbg.gov.ge/index.php?m=2 [in English]
12. Official site of the Central Bank of Poland. URL: https://www.nbp.pl/ (access date: 10.01.2021).
Ofitsiinyi sait tsentralnoho banku Polshchi. [Official website of the Narodowy Bank Polski]. Available at: https: //
www.nbp.pl/ [in English]
13. Official site of the Central Bank of Romania. URL: https://www.bnro.ro/Home.aspx (access date:
10.01.2021).
Ofitsiinyi sait tsentralnoho banku Rumunii [Official website of the National Bank of Romania] Available at: https: //
www.bnro.ro/Home.aspx [in English]
14. Official site of the Central Bank of Serbia. URL: https://nbs.rs/sr_RS/indeks/ (access date: 10.01.2021).
Ofitsiinyi sait tsentralnoho banku Serbii [Official website of the National Bank of Serbia] Available at: https: // nbs.
rs / sr_RS / indeks / [in English]
15. Official site of the Central Bank of Hungary. URL: https://www.mnb.hu/ (access date: 10.01.2021).
Ofitsiinyi sait tsentralnoho banku Uhorshchyny [Official website of the Magyar Nemzeti Bank]. Available at:
https://www.mnb.hu/ [in English]
16. Official site of the Central Bank of Croatia. URL: https://www.hnb.hr/ (access date: 10.01.2021).
Ofitsiinyi sait tsentralnoho banku Khorvatii [Official website of the Croatian National Bank]. Available at: https: //
www.hnb.hr/ [in English]
17. Pedchenko NS Monetary policy instruments of the National Bank of Ukraine and their application. Bulletin of Odessa National University. Economics series. 2016. № 21. S. 21–26.
Pedchenko, N. (2016). Monetary policy instruments of the National Bank of Ukraine and other applications
[Instruments of the monetary policy of the National Bank of Ukraine and their usage]. Visnyk Odeskoho natsionalnoho
university. Seriia Ekonomika - Odesa National University Herald Series: Economy, 21, 21-26 [in Ukrainian].
18. Petryk O., Rebryk M. Non-standard solutions for non-standard times. URL: https://zn.ua/eng/macrolevel/
nestandartni-rishennja-dlja-nestandartnikh-chasiv.html (access date: 24.01.2021)
Petryk O., Rebryk M. Nestandartni rishennia dlia nestandartnykh chasiv (2021). Available at: https://zn.ua/ukr/
macrolevel / nestandartni-rishennja-dlja-nestandartnikh-chasiv.html [in Ukrainian]
19. Savluk S. Interest rate policy of the central bank. Bulletin of KNTEU. 2018. № 2. S. 32–44.
Savluk S. (2018). Interest rate policy of the central bank [Interest rate policy of the Central bank]. Visnyk KNTEU
[HERALD of Kyiv National University of Trade and Economics], 2, p. 32-44 [in Ukrainian]
20. Tishchenko VV Monetary policy in Ukraine. Scientific Bulletin of Uzhhorod National University. 2019. № 26. S. 76–81.
Tyshchenko VV (2019) Monetary Policy in Ukraine. Naukovyi visnyk
Uzhhorodskoho natsionalnoho universytetu - Uzhorod National University Herald. International Economic Relations
And World Economy, 26, p. 76-81 [in Ukrainian]
21. Yurchyshyn V. Strengthening the importance of monetary policy in Central and Eastern Europe in
post-crisis period and recommendations for Ukraine. URL: https://razumkov.org.ua/uploads/article/2019_Monetary_
Stimuls_in_CEE_For_Ukraine.pdf
Iurchyshyn V. (2019). Posylennia znachymosti monetarnoi polityky v krainakh Tsentralnoi i Skhidnoi Yevropy
u postkryzovyi period i rekomendatsii dlia Ukrainy. Available at: https://razumkov.org.ua/uploads/article/2019_
Monetary_Stimuls_in_CEE_For_Ukraine.pdf

Ліцензія Creative Commons

This magazine is licensed under a Creative Commons Attribution-Noncommercial 4.0 International License.

The texts of the journal's articles are checked with the help of an anti-plagiarist
UniCheck

Published

2021-04-13