The Ukrainian interest rate pass-through in the post-1999 era and the effectiveness of the countercyclical monetary policy

Authors

  • Dr. Chu V. Nguyen Davies College of BusinessUniversity of Houston-Downtown
  • Dr. Anna Kravchuk Academy of the State Penitentiary Service, Chernihiv.

DOI:

https://doi.org/10.15549/jeecar.v6i2.309

Keywords:

Monetary policy, commercial banks, lending rate, interest rate pass-through, Central Bank key policy rate, Ukrainian Republic.

Abstract

This study investigates the nature of the Ukraine interest rate pass-through from January 2000 to November 11, 2018-the post-1999 era. The empirical results reveal a relatively high short-run interest pass-through of 0.724100 and a marginally overshooting long-run interest rate pass-through of 1.054309. The bounds test results indicate a strong long-term relationship between countercyclical monetary policy and market rates. These empirical findings suggest that the National Bank of Ukraine has been very effective in formulating and implementing its countercyclical monetary policy, in spite of the pervasive corruption, formidable political and economic challenges faced by the Ukrainian Republic over this sample period, the results are quite surprising.

Author Biographies

Dr. Chu V. Nguyen, Davies College of BusinessUniversity of Houston-Downtown

Dr. Chu V. Nguyen is an Associate Professor of Economics and Finance and former Chair of the FAEIS Department at the Marilyn Davies College of Business, University of Houston- Downtown. He earned an MA in Economics, an MS in Mathematics and a PhD in Economics from the University of Cincinnati. He is the editor-in-Chief of the Southeast Asian Review of Economics and Business. He is also the Chairman of the Board of Directors of Tropical Star Enterprise, Inc. He once served as an economist and then the Head of the Economic Analysis and Forecasting Department at the 5th District of Federal Home Loan Bank System. He published over 85 publications in reputable US and international peer-reviewed journals.

Dr. Anna Kravchuk, Academy of the State Penitentiary Service, Chernihiv.

Dr. Anna Kravchuk is a professor of Finance. She earned an MS in Financial Management from the Kyiv National Economic University and a Doctor in Economics from the Ukrainian Academy of Banking. She is a member Editorial Board of the Scientific Journal “Scientific Reviewer of Siverschyny”. She was a member of the Council for the protection of doctoral dissertations at the Ukrainian Academy of Banking. She published over 150 publications in reputable Ukraine and international peer-reviewed journals. Conducts research in the field of monetary processes and insurance business.

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Published

2019-11-21

How to Cite

Nguyen, C. V., & Kravchuk, A. (2019). The Ukrainian interest rate pass-through in the post-1999 era and the effectiveness of the countercyclical monetary policy . Journal of Eastern European and Central Asian Research (JEECAR), 6(2), 191–204. https://doi.org/10.15549/jeecar.v6i2.309

Issue

Vol. 6 No. 2 (2019): Journal of Eastern European and Central Asian Research

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