Chyrak I. The Monetary Policy in Conditions of Financial Instability (The Example of Ukraine)

Object – the monetary policy and it’s connection with financial instability. Purpose – deepening the theoretical and methodological basis for implementation of monetary policy in conditions of financial instability, the development of approaches to the analysis of the adequacy of the implementation of monetary policy of the National Bank of Ukraine and make practical recommendations for long-term macroeconomic stability of Ukraine in conditions of permanent global financial shocks. Methods – logical abstractions, logical and descreptional, analysis and synthesis, induction and deduction, historical, systematic and structural analysis, qualitative and quantitative analysis, statistical analysis, regression analysis. Results – theoretical generalization, justification and clarification of a number of methodological principles and approaches to the analysis of the implementation of monetary policy in conditions of financial instability and scientific justification for directions to increase the effectiveness of monetary policy of the National Bank of Ukraine in the environment of global instability. Novelty – the new approaches to the testing of financial instability in Ukraine have been proposed; it has been developed the interpretation of the term "financial instability"; methodological approaches to identification and systematization of the imbalances in the banking system under the influence of monetary factors, all of which lead to strengthening of financial instability have been developed; the approach to determine the degree of influence of certain factors on the dynamics of net external position of the banking system of Ukraine has been extended; the effectiveness of monetary actions of the National Bank of Ukraine in the oscillation periods of instability of the financial system of Ukraine has been evaluated; the theoretical approaches which allowed to detect procyclicality in the use of monetary instruments and to suggest directions of transformation of macro financial model of monetary policy of NBU to ensure financial and macro-economic stability in Ukraine. Introduced in the activities of the National Bank of Ukraine in Ternopil region, the Department of Finance of Ternopil Regional State Administration, Ternopil Regional Directorate of PC SB "Ukrgasbank", Ternopil Regional Administration of PS "CB "Financial Initiative" and in the educational process of the Ternopil National Economic University. Scope of application – activities of the National Bank of Ukraine and the Committee of Verkhovna Rada of Ukraine on finance and banking.