Mutual Influence of Fiscal and Monetary Policy in the Context of Ensuring Macro-Financial Stability of the State

Abstract

The article is devoted to clarifying the mutual influence of fiscal and monetary policy in the context of ensuring macrofinancial stability of the state. The main objectives of financial policy functioning are considered. The research used both general scientific methods and special approaches, namely analysis and synthesis, induction and deduction, scientific abstraction, scientific generalization, graphic visualization, the combination of which made it possible to achieve the conceptual integrity of this scientific work. Its main goal is determined, which is to ensure the highest possible level of welfare of the population through the most efficient distribution of GDP between types and spheres of economic activity, territories, strata and population groups. Among the directions of financial policy, two main ones are highlighted: fiscal and monetary. The essence of macro-financial stability of the state and its dependence on financial and monetary policy, as well as their coordination and mutual coherence, are considered, based on which a model of the mutual influence of fiscal and monetary policy in the context of ensuring macro-financial stability of the state is proposed.

Dynamics of the Development of the Credit Services Market in the Conditions of Financial Instability: A Case of Ukraine

“…The Federal Reserve System also provides another definition of the financial stability, namely: "a financial system is considered stable when banks, other lenders, and financial markets are able to provide the households, communities, and businesses with the financing they need to invest, grow, and participate in a well-functioning economyand can do so without making the system more vulnerable to sharp downturns. In contrast, in an unstable system, an economic shock is likely to have much larger effects, disrupting the credit flow and leading to larger-than-expected declines in the employment and economic activity" (Nikiforov et al (2022)). Thus, analyzing the essence of this approach to understanding the financial stability, it can be stated that the main attention is paid to credit services in it.…”

“…Gao and Fan [8] contend that ensuring the stability of national economies' development has become society's primary task. In the research, Nikiforov et al [9] and Bogolib [10] suggest that substantial changes in the factors necessitate considering the main macroeconomic trends directly influencing each country's economy. Therefore, constant analysis of macroeconomic indicators allows the identification of strategic development priorities for the near future [2,4,11,12].…”