ПРОБЛЕМИ КООРДИНАЦІЇ МОНЕТАРНОЇ ТА БЮДЖЕТНОЇ ПОЛІТИКИ В СУЧАСНИХ УМОВАХ

Abstract

The escalation of economic and political instability necessitates that governments and central banks seek determines the need to find new approaches to ensure the stability of the functioning of financial markets and public finances, as well as to support economic growth in the context of the implementation of their economic, financial and monetary strategies. Addressing these challenges involves enhancing the coordination of monetary and fiscal policies through the utilization of both formal institutions and informal practices, given the considerable need for updating traditional approaches proposed by economic theory. Based on the theoretical analysis of existing scientific concepts and approaches, this study discerns the principal trends in establishing methodological frameworks for orchestrating the interaction between monetary and fiscal authorities in formulating and implementing monetary and fiscal policies. By means of a comparative analysis of the activities of central banks and governments of the leading countries of the world and domestic practice, the interrelationships between monetary and fiscal policy have been determined and characterized, the main institutional, operational and instrumental factors that restrain the processes of effective interaction of monetary and fiscal authorities have been identified. Empirical analysis reveals that central banks in most countries exhibit a high degree of operational and managerial independence, although disparities in political and financial autonomy are apparent, potentially engendering contradictions in the collaboration between monetary and fiscal authorities. It is substantiated that successful coordination of monetary and fiscal policies necessitates the presence and efficient functioning of formal institutions in conjunction with the utilization of informal practices that complement and reinforce each other. The need to clarify the institutional foundations, functions and spheres of interaction of fiscal and monetary authorities, taking into account the features of the modern stage of economic development, is substantiated. The key principles are defined, the main goals are formulated and the objects of coordination are characterized. A system of measures is proposed that should contribute to the improvement of monetary and fiscal policy coordination processes by strengthening formal and informal cooperation of authorities. The practical implementation of the developed approaches and recommendations will enhance the effectiveness of the collaboration between the government and the National Bank of Ukraine in coordinating monetary and fiscal policies to ensure financial stability and promote economic and social development.