using the English-English dictionary

The situation changed long ago when the NBU impeded inflation rates and provided for financial stability.

A number of restrictivemeasures weretaken for this purpose:

- discount rate was raised;

- interest on banks' credit and deposit operations reached positive level rela­tive to inflation rates;

- norms of required reserves were raised;

- credit auctions were introduced in­stead of credit resources centralized distribution. As a result funds distribution among banks has acquired a market character;

- operations with state securities were introduced as the main source of covering the budget deficit.

All these measures had a positive impact on the dynamics of inflationary processes in Ukraine. However, even this stage of the NBU's monetary policy can be consid­ered monetarist only conventionally. The above aspects of this policy were di­rected primarily at restricting money supply. Thus, the NBU's monetary policy can be consid­ered monetarist only to the extent of its anti-inflationary orientation.

Monetarism in its classical under­standing also envisaged money demand stability, which is not inherent in the Ukrainian economy since its real sector has not been subject to qualitative changes directed at its structural reformation. Without prop­er institutional transformations and changes in the taxation and financial systems (primarily in the sphere of budgetary expenses) it is too early to speak about achievements of macroeconomic stabilization.

So, if the monetary policy as a means of reforming the economy is considered one-sidedly, without taking into account the interrelation of all components of the economic reform, it will continue to be estimated from the extreme points of view: as a panacea for overcoming all crisis phenomena, or as a reason of the reforms failure. Both the first and the second estimates will be as far from the truth as the identification of the cur­rent monetary policy in Ukraine with monetarism.

13. Complete the sentences using your own words:

1. The National Bank of Ukraine, as the central bank, carries out ….

2. The NBU maintains relations with other countries’ ….

3. The NBU has the exclusive right to ….

4. The NBU determines ….

5. The NBU accumulates, stores and uses ….

6. To support the banking system liquidity and stability the NBU ….

7. Loans are given to commercial banks by ….

8. The NBU provides cash management of the Ukrainian State Budget through ….

9. Special software – hardware package secures ….

10. Starting January, 1, 1998 the banking system of Ukraine switched over to ….

14. Match the words and word combinations given on the left

with their dictionary definitions given on the right.

1) central bank	a) the process of paying outstanding accounts between banks;
2) to issue currency	b) to print cash in the form of notes and coins;
3) to put currency into circulation	c) the authority of regulating and control character;
4) cash supply	d) the main bank in each country which acts as an arm of the government more than it does a bank. It is responsible for the regulation of the financial system, the establishment of rates of interest and the issue of currency notes;
5) gold and foreign exchange reserves	e) the quantity of cash available;
6) the Treasury	f) to issue currency and make use of it in each country;
7) the foreign exchange policy	g) safe investment condition;
8) supervisory body	h) the government department responsible for administering the financial affairs of the country;
9) interbank settlements	i) the policy regulating the rate at which one currency can be exchanged for another. A government may influence the rate at which the domestic currency is exchanged for another currencies by entering the market itself to buy or sell its own currency;
10) financial reliability	j) an amount of gold and foreign currency retained by a state;

Дата добавления: 2015-10-30