Monetary stimulation for US economy and its lessons for Ukraine

Oleksiy V. Matyushin, Elena M. Vishnevska


The paper deals with the features of the US monetary mechanism and the expected effects of its functioning in the context of their possible impact on the financial and real economic parameters defining the trajectory of the national economy development in modern conditions based on the specific problems faced by the Ukrainian economy and its industry, taking into account the large degree of the national industry dependence on the US dollar. It is concluded that the monetary measures can and should be used to restore economic development and stimulate economic growth in the country, but they can not replace the necessary actions related to the modernization of the real sector and reshoring, introduction of the R&D achievements and development of advanced manufacturing that is the main generator of innovation in the modern high-tech and highly competitive economy. The significance of sustained favorable institutional environment and responsiveness to «path dependence» factor is an important lesson for Ukraine that can be learned from the use of monetary mechanism of US economic growth in the global financial instability. In the US economic agents in general are used to trust to the Federal Reserve System and the innovative measures it takes to address the current and strategic development problems due to professionalism and success of the measures. The monetary authorities of the country take the necessary measures in a timely manner to ensure the maintenance of this institution of trust in the future. For this purpose such a tool as "forward guidance" is used that is of great institutional importance from the standpoint of compliance with the "long" rules of economic agents’ behavior. The lack of mutual trust in the Ukraine and the lack of "long" rules of behavior, not always professional actions of those who make the principal financial and economic decisions and related stable adverse institutional environment are the main challenges facing the Ukrainian economy and the monetary mechanism that is now being used to solve the pressing problems of national social and economic development.


monetary stimulating; the Federal Reserve System; non-standard monetary policy; interest rate; credit processes; economic growth

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