MONETARY POLICY TARGETS UNDER MARTIAL LAW

Introduction. Monetary policy is the main tool for maintaining economic development and macro-financial stability, but martial law causes a sharp disruption of traditional economic mechanisms, which causes market shocks and contributes to inflation. Therefore, the central bank must balance between supporting the economy and controlling inflation. The study of the choice of monetary policy targets is important for analyzing the effectiveness of the NBU's monetary regulation in the wartime crisis and is necessary for developing an optimal monetary strategy to support the economy. The purpose of the article is to critically analyze the NBU's monetary policy under martial law and to substantiate the most acceptable monetary policy targets for the Ukrainian economy. Results. The macroeconomic conditions under which the NBU sets monetary policy targets are outlined. The main factors of the negative impact of the inflation targeting regime on the economy and the banking system are analyzed. The problematic aspects of the central bank's implementation of the policy of managing the exchange rate and regulating the interest rate are systematized. The directions of optimization of the main approaches to the target priorities of monetary policy are determined. Conclusions. Under martial law, the main target of monetary policy should be to channel monetary resources from the financial sector to the real economy in order to ensure long-term productive growth, limit unemployment and inflation, and promote technological development of the national economy.