PROBLEMS OF DETERMINING THE LEVEL OF INDEPENDENCE OF THE NATIONAL BANK OF UKRAINE

Abstract

The article deals with the issue of determining the level of independence of the central bank. The existence of the independence of the central bank of any country is a necessary prerequisite for the stability of the banking system, price stability and the possibility of effective implementation of macroeconomic policies of the central bank, as well as the effective achievement of established goals (including maintaining price stability, financial stability, and others). Both theoretical research and international practical experience confirm that countries with more independent central banks tend to have more stable national economies and more effective anti-crisis policies. It has been established that the more independent a central bank is, the more often it achieves its goals. Government-dependent central banks have been shown to adopt a more lenient policy during inflationary shocks. Such banks also pay more attention to fluctuations in production volumes in countries than inflation. This study analyzed the theoretical basis for delineating the aspect of central bank independence, various categories that are crucial factors for the formation of central bank autonomy, and the calculation of the level of independence of the National Bank of Ukraine at the current stage of development was carried out. The study provides indexes of the level of central bank independence that economists have developed over the past thirty years. The calculated GMT and CBIE indexes demonstrate a significant level of the NBU independence. Based on the conducted assessment, the future areas of research and the need to develop a theoretical basis for determining the level of independence of the central bank during the war period are outlined. After all, most current studies and indexes were formed in peacetime. However, with a change in the situation in the country (imposition of martial law), the central bank's work algorithm may also change. Some components for calculating central bank independence indices may be irrelevant. This is one of the hypotheses that needs additional examine in the future.