THEORETICAL BACKGROUND FOR REFORM THE MONETARY SYSTEM OF UKRAINE

Abstract

Introduction. Reforming the monetary system of Ukraine is necessary in order to bring it to a state that would meet the needs of socio-economic development of the country.Problem. Monetary reform in Ukraine can be carried out by trial and error, as was the case, for example, in the first half of the 1990s, and can be much more productive, based on the relevant theoretical principles.Purpose: highlighting those provisions of the basic theories of money, which in the current conditions can form a theoretical basis for monetary reform in Ukraine in its broadest sense, in terms of creating a fundamentally new structure and content of the monetary system.The presentation of the material of the article. When reforming the monetary system of Ukraine, it is necessary to focus on practically oriented provisions of basic theories of money. Within the framework of abstract theories, the following provisions can serve these purposes: metalistic theory - to displace the worst money with the best, to achieve a positive foreign trade balance, to pursue a policy of protectionism and exchange rate stabilization; commodity theory - on balancing the amount of money and commodity mass, the application of the gold coin standard, ensuring the independence of the central bank and changing the discount of securities depending on the needs of the economy; nominalist, in particular state, theory - on the maintenance of the state value of paper money. In the framework of applied theories of money, which are based on quantitative theory, the relationship between the mass of money and GNP is of practical importance. The classical quantitative theory of money is based on a direct relationship between them, the theory of neoclassical money (transactional, conjunctural and Cambridge) - indirect.Results and its discussion. It is shown that the Caesian theory of money is important for stimulating economic growth in Ukraine, and monetary theory, coordinated among themselves on the basis of neoclassical synthesis, is important for curbing inflation.Conclusions. Practically oriented provisions of abstract and applied theories of money can form the theoretical basis of monetary reform in Ukraine, but their use should be based on modern Ukrainian realities.Keywords: monetary system, monetary reform, money theory, commodity mass, money supply, price.