MONETARY POLICY AS A FACTOR OF GLOBAL FINANCIAL MARKET VOLATILITY INCREASING

I. Shkodina, Y. Yehorova, V. Yatsyna

Abstract


After studying the dynamics of different segments of the world financial market, the authors concluded that it does not depend on the economic situation and the actions of central banks, especially the Federal Reserve System (FRS), which is actively pursuing a policy of quantitative easing. Currently, the change of technological modes of civilization starts and thus becomes effective more different from previous periods of connections and interdependence. Given this, concluded that using of modern instruments of monetary policy (increase / decrease rates) will not promote the growth of labor productivity, increase investment in real economy and overcome unemployment and income differentiation as long until effortlessly confirmed production technologies, correspond to new technological mode and will not happen structural reconstruction of economy.

Therefore, in our opinion, the most important task should be stimulation of scientific research large–scale implementation of new technologies; the consequence will be growth of labor productivity, which will increase on average level of interest rates that will create opportunities for effective monetary policy. In this way, the global financial market entered crisis period of cyclical system with a high degree crisis synchronization of national markets. Consequently, the impact of unconventional monetary policy instruments will be less predictable than usually and the global financial system is waiting for irreversible radical changes.


Keywords


Financial Market; Quantitative Easing; Volatility; stock index; helicopter money.

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References


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DOI: https://doi.org/10.18371/fcaptp.v1i22.110044

Copyright (c) 2017 I. Shkodina, Y. Yehorova, V. Yatsyna

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770