THE INFLUENCE OF DEVELOPED COUNTRIES CENTRAL BANKS' UNCONVENTIONAL MONETARY POLICY ON THE ECONOMY OF UKRAINE

Abstract

Abstract. In the period of globalization, the economic shocks that occurred in one country quickly spread to other countries. So the actions of the developed countries’ Central banks have a significant impact on other countries, in particular emerging markets countries. The paper considers an example of the impact of the European Central Bank, the Federal Reserve and the Bank of Japan's unconventional monetary policy on the Ukrainian economy. The purpose of the study is to assess the impact of the ECB, the Fed and the Bank of Japan's unconventional monetary policy on the financial indicators of Ukraine. The analysis is based on the event study methodology and constructing econometric models using the one least-squares method. The event study method allows to evaluate whether the time series of the studied indicators moves around a certain date. As a result, it was determined that the ECB's unconventional measures had the greatest impact on Ukrainian financial indicators, and the Bank of Japan had the least impact. Non-traditional measures of banks under study affected exchange rates and the yield of two-year government bonds. ECB and Fed’s Unconventional monetary policy had an impact on the MSCI stock index, and the ECB policy also affected the interbank three-month rate. On the whole, the first rounds of
unconventional monetary policy of the central banks under study have the main influence on the financial indicators of Ukraine. Key words: unconventional monetary policy, the European Central Bank, the Federal Reserve, the Central Bank of Japan, financial indicators.