Information on the thesis

The thesis is devoted to investigation of topical issues of monetary interest rate adjustment in the money market of Ukraine. The theoretical framework of the monetary control of interest rates in the money market and methodological foundations of its practical implementation are substantiated. On the basis of the generalizations of scientific studies the economic content of the “money market” concept is explored by defining its financial, macroeconomic and organizational components: according to the financial component – it is a set of financial and economic relations between business entities in the context of money turnover intensification; according to the macroeconomic component – it is a structural element of national market, a set of financial and credit and monetary resources of the country which are constantly moved, distributed and redistributed under the influence of money market entities; according to the organizational component – it is a set of entities that organize and accompany the transfer of funds from their owners to borrowers. The mechanism of interaction of the money market entities forms an interest as a price for financial resources. The essence of the monetary control of interest rates in the money market is defined, with particular emphasis laid on its representation as a system of economic relations with organizational and legal and methodological basis and instruments of influence of the subject of regulation on its object. The scientific approach to the system of monetary control of interest rates in the money market is formed through the characteristics of its components, in particular, the mechanism of monetary control of interest rates in the money market of Ukraine is defined by using the following: principles of applying tools of the monetary control of interest rates of the National Bank of Ukraine; methods used for development and implementation of interest rate policy; instruments of influence on the environment of the interest rate policy implementation; infrastructure of the interest rate policy implementation; legal, regulatory, other information support of the interest rate policy.

The interest rate policy of the National Bank of Ukraine is studied; its stages of formation and development are distinguished. The practical aspects of the interest rates adjustment in the money market of Ukraine are considered and its major drawbacks are detected. On the basis of the Granger causality test the key factors affecting the change in interest rates are defined and the logical and structural diagrams are constructed for tracing cause-effect links between the discount rate of the National Bank of Ukraine and macroeconomic indicators. The reconfiguration of certain factors affected by macroeconomic changes during a downturn of last few years is described. The influence of ascent of the interest rate channel of the monetary transmission mechanism on the stabilization of domestic money market is evaluated by compiling a list of key aspects of regulation, which focus it on providing stability of money market, specifying the conditions of effective engagement of the instruments of the interest rate control within the framework of the policy of fiscal and monetary restraints implemented by the National Bank of Ukraine and systematizing criteria, guidelines and indicators of the efficiency of the interest rates control in the money market of Ukraine.

The scientific and methodological approach to the monetary control of interest rates in the money market of Ukraine is suggested by forming the level of the discount rate of the National Bank of Ukraine and its adjustment according to the modification of market conditions. This allowed providing an algorithm of the monetary control of interest rates, defining the sequential stages of implementation of this process, taking into account the impact of essential conditions and factors. The directions for improving the functioning of the system of monetary control of interest rates in the money market of Ukraine are defined, in particular, by means of improving the functioning of the elements of the mechanism of such control: generating and transferring pulses of monetary policy by means of which the regulator provides inflation targeting in the country. The peculiarity of such mechanism is the availability of feedback links between the measures being implemented and the money market figures. The intensity of such links determines the efficiency of the mechanism. The key element of such mechanism is a clearly defined, effective accounting rate of interest. The need for the extension of the instruments for the interest rates control in the money market of Ukraine by expanding influence on the interest rate types (by expanding open market operations and commercial bank refunding operations) as well as on the levels and nature of the interest rate change is substantiated.

Keywords: discount rate, interest rate channel of monetary transmission mechanism, interest rate control, interest rate policy, money market, national bank, system of monetary control of interest rates in the money market.