FEATURES CENTRAL BANKS' MODERN MONETARY POLICY

Abstract

The article is devoted to the study of the principles and features central banks’ modern monetary policy. It has been established in the vast majority the price stability is key principle, while the Federal Reserve perceives the monetary policy priority in promotion maximum employment. The central banks’ modern monetary policy principles determine implemented monetary instruments. Since 2008, the term standard/ conventional and non-standard/ unconventional monetary instruments has been used by central banks to distinguish between pre-crisis and post-crisis monetary policy. Contemporary scientific attempts have been made also to characterize these monetary measures groups. However, theoretical-applied studies of this problem make sense only for a separate territorial market comparing pre- and post-crisis measures without attempts to generalize or systematize monetary instruments in a wider range. Long-term use unconventional approach allowed market regulators to analyze their advantages and disadvantages and to justify the non-traditional tools using in the future. Modern situation banking sector is, on the one hand, a consequence of the unconventional monetary instruments using; and, on the other hand, a result of the new disturbing factors influence such as coronavirus pandemic and full-scale russian-Ukrainian war. The latter factor caused uncertainty in inflation expectations not in Ukraine, but also became a trigger for global inflation. New market realities force central banks to review non-standard approaches and search for effective monetary policy instruments. The priority directions of central banks’ monetary policy in the future cannot be considered only credit cost reduction and credit easing. The stagnation and crisis phenomena existence are not necessarily consequences of insufficient funding. Other factors should be considered, such as financing inefficient projects, capital outflow from the market due to aggressive low interest rates, and growing competition between banks and para-banking institutions and fin-tech companies. These and other negative factors inherent in certain territorial markets face central banks with the challenge of revising key principles monetary policy and the tools for its implementation.