Belins'ka Y. Interaction of exchange rate and inflation in the transition economy of Ukraine

The subject of research is the currency and money exchange in the economy of Ukraine and such process as devaluation and inflation. The objective of the work is to determine regularities of exchange rate formation process and of interaction mechanisms of exchange rate with inflation. Methods of research - a system method of scientific cognition, methods of comparison and generalisation, analysis and synthesis, abstract and concrete. Theoretical and practical results - peculiarities of exchange rate formation process as integrity interaction home and foreign factories in the process of macroeconomic development country have been grounded. The theoretical performances about purchasing power parity (PPP) as orientation for dynamics of exchange rate in long-term period have been deepened. The interdependence between exchange rate change and inflation's one has been revealed, the essence of which lies in the more changeable of exchange rate than the inflation. It has been highlighted the objective estimati on of dynamic correlation of exchange rate and inflation in the context creation of effective currency and antiinflationary economic policy, which responds modern conditions of market transformation of economic system of Ukraine. Measure of introduction - the main results of the dissertation were used for the preparation suggestion about question's of the currency regulation, which were worked by Institute of Economy of the National Academy of Science of Ukraine; scientific-analysis report for Ministry of Economics and Ministry of Finances (№122-13/583 - 01.12.1999). The carried out research enables to evaluate correlation's level of exchange rate and purchasing power parity and determine economic well-grounded exchange rate. The results of the research have led to concrete proposals and is recommended for practical use to the Ministry of Economics, Ministry of Finances, National Bank of Ukraine for creations of effective currency and antiinflationary economic policy. Sphere of use - economic policy of the st ate.