RETHINKING MONETARY-FISCAL POLICY COORDINATION IN UKRAINE

The slowdown in economic development as the result of the reduction of the efficiency of the functioning of state institutions determine the focus of the governments of most countries of the world on achieving sustainable economic growth, as well as ensuring macroeconomic and macrofinancial stability. The nature and peculiarities of the influence of the central bank's monetary policy and the fiscal policy of the government on the real GDP dynamics are analyzed, and the main quantitative indicators of these interconnections for a small open economy are determined in the article on the basis of statistical data of the National Bank of Ukraine and the State Statistics Service of Ukraine during the period of 2000-2017. For the quantitative assessment of the influence of monetary and fiscal factors on GDP, the models of autoregression with distributed lags - ARDL are used. The analysis make it possible to distinguish and characterize three stages of combining the rigid and stimulating monetary and fiscal policy in Ukraine in 2000-2017. The obtained results indicate that in recent years in Ukraine the fiscal policy dominated the monetary, and their coordination was substantially weakened. The article examines the influence of the dynamics of the monetary aggregate M3, the inflation rate and the weighted average base interest rate on the growth rates of real GDP in Ukraine, the impact of the use of the "monetary clamp" effect on the increase in the NBU's interest rate, and the direct effect of monetary factors on the fiscal policy. The authors conclude that the inconsistency of monetary and fiscal policies is one of the reasons for the high volatility of macroeconomic indicators. The article substantiates the conclusion that it is necessary to overcome the increasing antagonism in the implementation of monetary and fiscal policies in Ukraine and to strengthen their coordination.