The next issue of the research journal "Visnyk of the National Bank of Ukraine" addresses the issues of inflation targeting effectiveness in resource-rich economies and its dependence on political regime, highlights the role fiscal policy plays in fueling inflation, and shows the redistributive effects of monetary policy on household income. Specifically, the articles contain practical conclusions and recommendations on the following topics:
- Impact factors of price stability in commodity economies
The article "Price Stability and Inflation Targeting in Commodity Economies: Macroeconomics versus a Political Economy?" by ViktorKoziuk explains how maintaining price stability in commodity economies is influenced by their resource rent distribution and the nature of political regime. In his research the author performs an empirical analysis based on data from 68 resource-rich countries and challenges the believe thatthe commodity factor alone might be an impediment to maintaining price stability and implementing inflation targeting. Viktor Koziuk conclude that inflation targeting helps democracies achieve better financial stability parameters and a higher level of economic diversification. Among autocracies, the best price stability parameters are observed in countries that have a sovereign wealth fund.
- The effect of fiscal policy on GDP and inflation in Ukraine
The article "How Does Fiscal Policy Affects GDP and Inflation in Ukraine?" presents the results of a study conducted by ArtemVdovychenko. In his research the author applies the standard SVAR with a Blanchard-Perotti identification scheme to estimate the impact of specific budget expenditures and tax categories on GDP and inflation in Ukraine. He argues that fiscal multipliers in Ukraine in absolute values are higher for budget expenditures than for taxes. The researcher also highlights that both budget expenditures and taxes have a positive impact on inflation.
- Redistributive effects of monetary policy
Olga Bondarenko’s research “The Redistributive Effect of Monetary Policy Across Generations” revises the redistributive channels of monetary policy transmission and their impact on income and wealth distributions in a New-Keynesian Overlapping Generations (OLG) model. The model mimics total asset holdings and earnings processes of several types of households across generations, based on their attitude to saving and income group. The researcher concludes, that in this environment, expansionary monetary shocks stimulate capital and debt accumulation to a larger extent for middle-aged individuals, contributing to intergenerational inequality. Furthermore, the author raises a concern that heterogeneity of labor income augments this effect, benefitting richer and more productive workers.
The new issue of “Visnyk of the National Bank of Ukraine” is the eleventh issue published in the revised format of the journal. Starting from September 2015, the NBU Visnyk is published on the official NBU website in electronic format quarterly in Ukrainian and English.
The editorial board invites academics, experts, financiers and representatives of banking academic community to join the research within the scope of the journal and send research materials to be reviewed and published to email: [email protected]
Detailed information about the publication and requirements to articles can be found via the link:
Visnyk of the National Bank of Ukraine