Seheda L. The monetary policy of central bank in a context of financial volatility

The object is the central bank’s activity as the institutional basis of the state's influence on the economy through means of monetary policy. The aim is to substantiate the theoretical foundations of monetary policy, the central bank’s functions and tools in the context of overcoming the financial instability; a comprehensive analysis of practical aspects of the monetary policy implementation of the National Bank of Ukraine and the identification of priority areas for improving monetary instruments as the main instruments for overcoming the financial instability in Ukraine. The results of the study are to deepen the theoretical and organizational principles of the mechanism of monetary policy realization of the central bank in a situation of financial instability, to determine the strategic directions of organizational principles and monetary policy instruments optimization of the NBU, proceeding from the tasks of financial instability overcoming and economic development restoration. The novelty is to develop theoretical approaches further to the essence interpretation of the concepts of "macroeconomic stability", "financial stability" and "financial instability"; to improve scientific and theoretical approaches to the definition of the central bank essence; to complete classification of the main functions of the central banks; to substantiate theoretically the essence of the eclectic monetary regime of monetary policy; to develop the conceptual foundations of the theoretical substantiation of the transmission mechanism essence of monetary policy; to improve theoretical and methodological aspects of modeling the efficiency of transmission mechanism and its implementation tools on the basis of correlation and regression models and factor analysis combination. It was implemented in the activities of: the Committee on financial policy and banking activities of the Verkhovna Rada of Ukraine, the Department of Economic Development and Trade of the Ternopil Regional State Administration, the Department of Economic Development and Trade of the Ternopil Regional State Administration, the Ternopil Regional Directorate of JSB "Ukrgasbank", Lviv Central Branch of JSC "Ukrainian Construction and Investment Bank" and the Ternopil National Economic University. Sphere of use: the National Bank of Ukraine, Association of Ukrainian Banks.