CENTRAL BANK INDEPENDENCE
UNDER CONDITIONS OF FINANCIAL INTEGRATION
Financial integration, as an integral part of any country, should be made through reforms in the banking sector and the main object of economic reforms should become the Central Bank. The activities of the Central Bank, as a guide to monetary policy, should be based on cooperation between public authorities and the banking regulator, namely the National Bank of Ukraine. The article examines fundamental principles for determining the independence of the Central Bank taking into account certain global indicators and indices.
It is shown detailed approaches and criteria for the analysis of indexes of political and economic independence of the Central Bank in the financial integration. The study was built by defining the basic analysis criteria, namely the GMT Index, the Alesina and Summers Index, the Eijffinger - Shalin Index and the Cukierman Index. Moreover, the article analyzes the independence of the National Bank of Ukraine in 2015 by using the index GMT.
The analysis of factors influence on the independence of the Central Bank was conducted based on data obtained by the GMT Index.
It should be noted, that the article has considered dynamics of the number of internal government loan bonds at NBU's disposal and made analysis from 2007 to September 2015.
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Keywords: National Bank of Ukraine, financial integration, central bank, independence, monetary policy, the index GMT. |
BANK OPERATIONS
Shchegliuk Maksum
postgraduate SHEI «Kyiv National Economic University named after Vadym Hetman»
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