Abstract for: Conduct of the Monetary Policy during the Macroeconomic Instability

Transition from the fixed exchange rate to inflation targeting in Ukraine changed the power of the transmission channels, what requires careful study. As a result, regime switch provokes a lot of due to date questions about the current response of the prices, inflation expectations, economic growth, commercial bank’s interest rates to the changes of monetary instruments. Besides that, the considerable shadow sector (vary from 30 to 50% of official GDP) causes distortion not only in official statistics on which policymakers are rely, but also in the effects of the monetary policy affords to ensure the price stability. Therefore, this topic is highly relevant for Ukraine, because to reach macroeconomic stability it is important to take into account all the factors, such as changes in monetary instruments, significant level of shadowing, consequences of the past crises and key features of the country’s economy.