Information on the thesis

The  thesis  for  a  Candidate  Degree  in  Economic  Sciences.  Speciality  08.00.08  –
Money, Finance and Credit. – Ivan Franko National University of Lviv. – Lviv, 2016.
The thesis investigated the peculiarities of inflation targeting regime, as well as the
operational mechanism of monetary policy of central banks which implemented inflation
targeting.
Own definition of the concept of «economic mechanism of inflation targeting» was
offered and a structural model of the economic mechanism of IT which provides allocation
of five subsystems was developed. They are: 1) functional support; 2) accountability; 3)
information support; 4) forecasting and modelling; 5) legal support.
The  conditions  necessary  for  the  effective  implementation  of  inflation  targeting
were  examined.  The  features  of  Ukraine’s  transition  to  the  new  monetary  regime  were
clarified. It was determined that operating procedures of inflation targeting are realized by
means of active and passive approaches. Monetary instruments within each approach were
analysed in detail. In particular, it was investigated that passive approach includes three
elements: a narrow interest rate corridor, irregular open market operations and the reserve
requirement  ratios;  active  approach  includes:  a  wide  interest  rate  corridor;  regular  open
market operations and minimal use of the reserve requirement ratios.
Two  main  stages  of  the  introduction  of  inflation  targeting  in  Ukraine  were
identified.  Preparatory  (2002  –  2010):  the  creation  of  appropriate  preconditions  for
introduction of IT regime, which was ended with the introduction of inflation targeting in
July  2010  by  making  appropriate  changes  to  the  Law  of  Ukraine  «About  the  National
Bank of Ukraine»; stage of adaptation of IT regime (2011 – present), within which the
period of the positive results received from implementation of inflation targeting (2011 –
2013)  and  the  crisis  period  (2014  –  present),  which  is  characterized  by  a  significant
deterioration of the economic situation in Ukraine and the inability of the National Bank
with  the  new  monetary  regime  to  ensure  price  stability  in  the  conditions  of
macroeconomic  instability,  were  singled  out.  Results  of  the  implementation  of  the
monetary regime that is based on the price stability in Ukraine for the period of 2011 –
I quarter of 2015 were analysed.
The  specifics  of  the  economic  mechanism  of  inflation  targeting  in  developed
countries and in developing countries was considered. Economic mechanism of inflation
targeting in Ukraine was described, its main features were highlighted. The optimum level
of inflation for Ukraine in medium-term prospect was determined. Functional dependence
of  a  consumer  price index  on  a  number  of  macroeconomic  indicators  was  investigated.
The legal framework of implementation of national monetary policy in the context of the
transition to the new monetary regime was analysed. Recommendations for improvement
of the effectiveness of monetary regulation in the conditions of application of the regime,
which is based on price stability, were offered.
Keywords:  monetary  policy,  central  bank,  inflation,  inflation  targeting,  price
stability, economic mechanism of inflation targeting.