The period of implementation of monetary policy

The period for implementing monetary policy (in conjunction with the approval of the monetary reform) and was characterized by the introduction of such financial instruments as government securities. National Bank, since 1996, ceased to provide direct loans to cover the budget deficit and ensure the provision of funds by buying government securities in the primary market. Total for 1996-1999, the National Bank sent the purchase of government securities 14.5 billion UAH. in the portfolio of the National Bank came a financial instrument, which can be used in the regulation of the monetary market. Further development of the banking system and monetary tools to control the monetary market (the third phase 2000-2007) was aimed at maintaining price stability, it is based on tons of stable economic growth. With the adoption of 20.05.1999, the Law of Ukraine "On National Bank of Ukraine," process of development and approval of the document on the conduct of monetary policy has changed significantly. The years 2000-2007 can be characterized in the monetary sphere as adequate processes that occur in the real economy and the state budget. During this period, restored the trend towards economic growth, price stability is greatly increased, the rate of inflation after the currency reform has tended to decrease and was such that corresponds to the economic development of the country, which only became significant at the beginning of the path of economic reform. A characteristic feature of the 1999-2005 period is the steady growth of nominal money, calculated on all units - nearly 30-40% annually. In this connection it is necessary to recall the heated debates that took place in 1996-1997 at the low level of economy monetization ratio, which reflects the saturation level of economic circulation of money and the negative effects of so-called "artificial scarcity of money" and to re-monetization of the economy of reproduction processes [13, pp.12-14]. Note that in Ukraine the figure was the lowest in 1995-1996 - about 9-10%. During 1997-2000, it was observed a gradual increase, but even at the end of 2000 the level of monetization in Ukraine was lower compared to countries such as Venezuela (19.0%), Zimbabwe (20%), Romania (18.9%) . Romania (18.9%). In the countries of the so-called "Big Seven" this figure ranges from 55-100% in developing countries - 40-60%. In the United States, the monetization of the economy in 2004 amounted to 79%. Incidentally, one of the highest is the level of monetization in China - more than 150%. Topic: A PRACTICAL ANALYSIS OF MONETARY ISSUE | Tags: politics