Nedobuga M.V., Burlakova O.N., Finogeeva E.V.

Oles Honchar Dnipropetrovsk National University, Ukraine

ANTI-INFLATION STRATEGY IN UKRAINE

Inflation is one of the most important macroeconomic indicators of the level of economic stability of any country. In fact it is the barometer of social and economic development.

Inflation is a complex and multi-factorial phenomenon, the essence of which is a depreciation of money, reducing their purchasing power in relation to goods, foreign currency and gold. Impairment is due to the excess number of bank notes in circulation, the amount of commodity prices and is reflected in their growth.

The major adverse effects of inflation is to reduce the rate of economic development, inhibition of science and technology, weakening incentives for productive activities, strengthening the shadow economy, the crisis of the financial system and other things. The main social-economic impact of a reduction in living standards and depreciation savings and more.

The analysis of inflation in the period from 2007 to 2011 shows some deceleration of inflationary process. According to the State Statistics Committee of Ukraine for inflation 2011yy. was only 4.6%, compared with 2010 – 9.1%, 2009 – 12.3%, 2008 – 22.3% 2007 – 16.6% [1]. At the same time, Ukraine has no effective anti-inflation strategy of development since the implementation of anti-inflationary policy depends on many factors in the country remain unresolved.

World experience proves the need for theoretical justification of anti-inflation strategies for economic growth, which calls for incremental measures to curb inflation. The main anti-inflation measures include state regulation of supply and demand, indexation of income, control over prices and wages.

Anti-inflationary policy includes measures to enhance national economic development – restriction of monopoly, the development of competition, restructuring the economy, investment and innovative activity, protectionism, etc..

Important role in anti-inflation policy is rationalization of foreign economic relations of the country. Passive external imbalance provokes inflation. It should provide a balance in foreign trade, export sectors to support and protect domestic producers, to conduct constructive monetary policy [2].

The global crisis showed strong dependence of Ukraine's economy from external conditions. Because of global imbalances in the world investment activity has reduced. Instead, Ukraine by rapidly growing public debt is becoming more dependent on external sources of credit. One of the objectives of monetary and exchange rate policy of the NBU, through which the state controls the inflationary process is to adapt to adverse environmental conditions. During the crisis, central banks of countries take measures to restore liquidity by increasing the money supply, however, such action would be in Ukraine is extremely negative and lead to depreciation and inflation. Therefore, the application of financial and credit levers reduce inflation to clearly predict the limits of macroeconomic proportions determined by the fundamentals of monetary policy.

The important role in anti-inflation policy is rationalization of foreign economic relations of the country. The current state of the world economy is characterized by severe consequences of the economic crisis. In times of financial instability experienced significant losses world trade. The problem of reducing the volume of exports and imports, which has affected Ukraine, negatively manifested in the form of passive balance of payments, provoking inflation. Therefore, it is important today is to ensure a balance in foreign trade by maintaining the state of export industries and protect domestic producers of structural exchange rate policy [3].

In countries with transformational economies and that is the economy of our country, an important anti-inflation measure is the control of the movement of foreign currency. Because this economy is usually a high level of dollarization, making money circulation is very sensitive to various external and internal factors, and under certain conditions can become a factor in rising inflation. That’s why necessary to be very careful in developing and implementing monetary policy in all its variety of directions. Politics in the exchange rate, in the movement of foreign currency, its involvement in the investment process all of this complete great importance for the whole process of reproduction, and for the condition and dynamics of inflation.

Significant place in Ukraine to curb inflation should be an organization of public administration. Today the country has a large cumbersome administrative apparatus reorganization which is not only in its reduction, but also in improving the efficiency of utilization of funds allocated to this unit from the state budget. A considerable reserve for increasing the effectiveness of anti-inflation policy is in the plane of the entire public sector, where not only a problem in optimization of budgetary costs, but also to improve its organizational structure.

Implementation of adequate anti-inflation strategy in Ukraine is complicated by the negative impact of the global financial crisis. Inflation, as a phenomenon that accompanies a crisis period of economic development, requires the development of a number of measures for its elimination, which have become elements of the anti-crisis economic policy.

Literature:

1. The state committee of statistics of Ukraine [electronic resource]. – Mode of access: http://www.ukrstat.gov.ua

2. Lipsin I.V. Economy: the Textbook for high schools / "Omega-l" 2006, – 656 [electronic resource]. – Mode of access http://bookatruck.net/book_86.html

3. Beletskaya L.V., Beletsky A.V., V. Savic I.V.- Economic Theory (Part 1) (Politekonomiya. Microeconomics. Macroeconomics). B 61 Teach manual 2nd ed. revised. and add. – K.: Center for educational literature, 2009. — 688 р.