Sergei Udovik

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Economics

By Serhiy UDOVYK, special to The Day

Ukrainian President Leonid Kuchma addressed the consultative meeting with a comprehensive speech in which he characterized the current economic situation in Ukraine and paid special attention to the development of high-tech industries, particularly mentioning the recently adopted law on technological parks in Kyiv and Kharkiv, based on the Paton Institute of Electrical Welding and Institute of Monoclinic Crystals, and the Semiconductor Technologies and Materials, Optical Electronics and Sensory Equipment Technological Park. The President said Ukraine has great opportunities in the agrarian sector whose products are being exported to eighty countries.

Ukraine is also assuming great importance as a...

By Serhiy UDOVYK

 

Every year we discover that this time we have a budget bill better than the previous year’s. Of late, it has started being described as “the best,” “balanced,” “submitted on time,” and one allowing for practically every requirement set forth in Parliament’s budget resolution.

And so this year’s budget bill is the best ever. Even the IMF agrees that it is very good, the Cabinet claims. Does this mean there are no problems?

Perhaps. Our recent history shows there is no sense discussing budget bills. Life dictates its own terms and conditions, and every budget is invariably never fully implemented, with the Cabinet always coming up with convincing stories explaining its nonfufillment, while cadre changes...

By Serhiy UDOVYK

 

LAST WEEK VIKTOR YUSHCHENKO AND IHOR MYTIUKOV ANNOUNCED FURTHER STEPS TO STABILIZE THE HRYVNIA. ACCORDING TO THE NBU HEAD, THE MAIN THING IS TO RESTORE PEOPLE’S CONFIDENCE IN THE NATIONAL CURRENCY, BECAUSE THE DYNAMICS OF THE MONETARY INDICES DO NOT TALLY WITH THE CURRENT HRYVNIA RATE

Ukraine is considered to have its own monetary unit, the hryvnia, as well as its own fiscal system. Scholarly debate is centered on which of the two systems is better — Keynesian economics or monetarism — and whether the inflation rate should be as low as possible or allowed to remain rather high.

To answer, one has to consider the functions of money. Any national monetary unit is supposed to be a means...