ANALYSIS OF FACTORS INFLUENCING THE EFFICIENCY OF MONETARY POLICY: DOMESTIC REALITIES

Abstract

Introduction. The article considers the main factors that influence the efficiency of monetary policy, analyses their influence on the efficiency of traditional instruments, which are directed by the NBU to stabilize the economic system, and suggests the improvement of the NBU monetary policy taking into account the factors that reduce its effectiveness. Purpose. The article aims to determine the factors that reduce the efficiency of monetary policy of the National Bank of Ukraine, and to develop the proposals, which intend to minimize its negative impact. Method (methodology). The following general scientific methods of analysis have been used in this research: methods of induction, method of deduction, method of systematization and generalization. Results. The main factors that influence the monetary policy of the NBU and its efficiency in the current conditions have been analysed. The factors, which have the greatest influence in the conditions of economic instability, have been singled out. These factors must be taken into account when conducting monetary policy of the NBU to increase its efficiency. Recommendations for improving the monetary policy of the NBU at the present stage have been suggested.