Inflation Targeting and Economic Growth in Ukraine (Theory and Its Application in the Practice of the National Bank)

The reciprocal, two-way relationship between inflation and economic development, which is often, although not entirely correctly, measured by GDP dynamics, is the subject of long discussion in the economic literature. Following the main conceptual results of this debate, the authors analyze the relationship between economic growth and inflation in Ukraine over the past decade. The goal of this article is to determine not only the impact of inflation on economic growth, but also to assess the level of effectiveness of government policy to curb inflation. Which is implemented, inter alia, through inflation targeting carried out by the National Bank of Ukraine. The article discusses the main results of the implementation of this policy, draws relevant conclusions and formulates conceptual recommendations.