The National Bank of Ukraine has published  the   fourth issue of the research journal “Visnyk of the National Bank of Ukraine”,  where readers can find articles on the following topics:

• Transformation of central banking.

The review article entitled “Transformation of Central Banking Annual Research Conference of the NBU.

Key Issues” focuses on the outcomes and conclusions from the First Annual Research Conference of the National Bank of Ukraine, which was held in Kyiv on 19 – 20 May 2016. The article outlines recent trends in central banking that were covered by keynote speakers and discussed during panel sessions. This article highlights the diversity and non-conventional nature of these trends ranging from monetary policy operating in the low-interest rate environment and the threats posed by deflation, financial stability and capital flow management, to the impact that new financial technologies and cultural characteristics have on transformation processes in central banks. Also, the article pays attention to recommendations to be followed by central banks in their current and future activities.

• Macroprudential Regulation as a Key Element of Ensuring Financial Stability

In response to the global financial crisis of 2007–2009, more and more public authorities across the world are starting to take care of the financial stability. The article “Institutional Set-Up and Mandates of Macroprudential Authorities: International Experiences and Benchmarks for Ukraine” examines international experience of 67 countries to find out which authority is commonly responsible for ensuring financial stability. The review of international experience suggests that the design of the macroprudential architecture differs from country to country, depending on the level of the financial system’s sophistication, the government’s role, and the central bank’s mandate. It is common practice for new market economies that the macroprudential mandate is assigned to the central bank that already enjoys a broad supervisory and regulatory mandate. Therefore, the article concludes that it would be appropriate to assign the macroprudential mandate to the National Bank of Ukraine.   

• Impact of the Hryvnia Exchange Rate on Domestic Prices in Ukraine

How do the nominal effective exchange rate movements influence consumer price levels in Ukraine? The article entitled “Nonlinear Exchange Rate Pass-Through to Domestic Prices in Ukraine”   argues that the degree of exchange rate pass-through depends on the size and direction of exchange rate movements. Estimation results suggest that the pass-through effect to core consumer prices is higher from currency depreciation than in the case of appreciation. This can be explained by a high degree of market monopolization. Also, the research findings suggest that consumer prices respond differently to small, medium, and large exchange rate changes. In particular, prices are sensitive to small and extremely large changes, but the pass-through effect is insignificant if exchange rate movements are moderate. Consequently, the paper's findings provide yet another evidence proving the appropriateness of the NBU’s decision to adopt an inflation targeting regime, which is marked by moderate exchange rate fluctuations.

The quarterly research journal “Visnyk of the National Bank of Ukraine” has been published on the NBU’s website since September 2015. It is available only in electronic format. The editorial staff invites all interested experts and academia to submit their studies to the “Visnyk of the National  Bank of Ukraine.”