Vakhnenko T. Economic Effects of Public Debt of Ukraine

Public borrowing in Ukraine. To explain the effects of public borrowing and to evaluate the implications of the internal borrowing for macroeconomic situation in Ukraine. Methods: analysis, history, mathematics, statistics. The implications of public debt in medium-run and long-run are substantiated. The mechanisms of influence of internal public borrowing on macroeconomic situation in Ukraine are revealed. The econometric models of capital investment, interenterprise arrears, interest rates, bank's credits to enterprises, inflation rates and depretiation rates are worked out. Based on them, the effects of government domestic bonds floatation in 1995-1998 are calculated. Approaches for assesment fiscal sustainability are proposed to analyse the potential implications of public debt. Measures of fiscal and monetary policy, aimed at securing government solvency in Ukraine, are worked out. Results are introduced into the Accounts Chamber of Ukraine activity. The sphere of implementation is the policy of p ublic borrowing (evaluation of the effects of government bonds floatation).