Ukraine- Monetary Regime Options

I visited Kyiv March 11 – 14 and participated in the Emergency Economic Summit for Ukraine at which I discussed the pros and cons of the central bank following currency board rules or inflation targeting. My paper on the subject will appear in a few weeks in the Cayman Financial Review, but the introductory paragraphs give a quick picture of the domestic (not external Russian issues) political situation. I reproduce those here:

The recent protests leading to the replacement of the government of Victor Yanukovych, reflect a widely held desire for the rule of law and normal individual freedoms and dignity. The few thousands who demonstrated in the Maidan (Independence Square) in Kyiv starting November 21, 2013 following the surprise refusal of then President Yanukovych to sign Association and Free Trade Agreements with the EU, swelled to almost one million by early December in response to deadly police attacks on the demonstrating students. The Ukrainian public, countrywide, is outraged at the corruption of its government and wants a new direction more reflective of western values.

President Yanukovych was removed from office on February 22 by a vote of 328 of 447 members of the Ukrainian parliament. Ukraine’s leadership has changed a number of times since the collapse of the Soviet Union without any significant or enduring change in governance and corruption. More than the head of state needs to change. Having been disappointed by the outcome of the Orange revolution, the demonstrators remain distrustful of any new government with old faces. The barricades and tents of the Euromaidan demonstrators remain in place, and their occupants vow to stay to monitor the new government at least until the Presidential elections scheduled for May 25.

Maidan tent city IMG_0162IMG_0160

About wcoats

I specialize in advising central banks on monetary policy and the development of the capacity to formulate and implement monetary policy.  I joined the International Monetary Fund in 1975 from which I retired in 2003 as Assistant Director of the Monetary and Financial Systems Department. While at the IMF I led or participated in missions to the central banks of over twenty countries (including Afghanistan, Bosnia, Croatia, Egypt, Iraq, Israel, Kazakhstan, Kenya, Kosovo, Kyrgystan, Moldova, Serbia, Turkey, West Bank and Gaza Strip, and Zimbabwe) and was seconded as a visiting economist to the Board of Governors of the Federal Reserve System (1979-80), and to the World Bank's World Development Report team in 1989.  After retirement from the IMF I was a member of the Board of the Cayman Islands Monetary Authority from 2003-10 and of the editorial board of the Cayman Financial Review from 2010-2017.  Prior to joining the IMF I was Assistant Prof of Economics at UVa from 1970-75.  I am currently a fellow of Johns Hopkins Krieger School of Arts and Sciences, Institute for Applied Economics, Global Health, and the Study of Business Enterprise.  In March 2019 Central Banking Journal awarded me for my “Outstanding Contribution for Capacity Building.”  My most recent book is One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina. I have a BA in Economics from the UC Berkeley and a PhD in Economics from the University of Chicago. My dissertation committee was chaired by Milton Friedman and included Robert J. Gordon.
This entry was posted in News and politics, War and tagged , , , , . Bookmark the permalink.

2 Responses to Ukraine- Monetary Regime Options

  1. Jim Roumasset says:

    Warren, By the 1994 Trilateral Statement Ukraine agreed to transfer their nuclear weapons to Russia in exchange for security assurances from the U.S. and Russia. Said assurances were reaffirmed by Obama and Medvedev in the 2009 joint statement. What happened? Jim

    • wcoats says:

      Good question. Russia has clearly violated that agreement. But it was not a formal treaty and the U.S. and U.K. at least have not interpreted it as an obligation to militarily defend Ukraine (as would be the case under NATO membership).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s