Development and application of the monetary rule for the base interest rate of the National Bank of Ukraine

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2014

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Abstract

The paper studies methodological approaches to the formation of monetary policy rules for the base interest rate of the National Bank of Ukraine demonstrating the expediency of their development on the basis of the spread-adjusted Tay- lor rule. It carries out the assessment of equilibrium values for the rule’s parameters by using a modified Hodrick- Prescott filter as well as the identification of the possible parameters of the monetary rule and the estimation of their coefficients through the development of multivariate regression models.

Keywords

monetary policy rule, spread-adjusted Taylor rule, central bank, monetary market, inflation targeting

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Kozmenko, S. Development and application of the monetary rule for the base interest rate of the National Bank of Ukraine / S. Kozmenko, T. Savchenko, Y. Piontkovska // Banks and Bank Systems – V. 9, Issue 3 – 2014 – pp. 50-58.

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