INDEPENDENCE OF CENTRAL BANK: NEW CHALLENGES

Abstract. The studydeals with determining the status of central banks and their formal independence in context index approach. authors argue that there is an inverse relationship between inflation level banks. It turned out expansion powers bank based on GMT-index shows a lower independence. conducted quantitative study elements peculiarities formulating bank's mandate, procedures for agreeing goals, appointing management duration its stay office, ability to choose apply monetary instruments, covering operating costs transferring profits budget, correct interpretation legislation are identified. problems approach density indices rates, as well quantification legislation. To eliminate shortcomings basic approach, alternative approaches proposed, particular, constitutional independence, TOR political vulnerability management. Extrapolating developed countries does not always work when sampling expands include emerging market countries. Particularlyin weak institutions, de facto correspond one. For example, Ukraine, asserting consistency rate quite complicated. Particular attention paid problem opposition economic bank. originality article due need identify new challenges authorities macroeconomic institutional factors lead imbalances consolidation objectives (instruments) at legislative achieve price stability. Keywords: bank, quality institutes, GMT-index, power. JEL Classification G21 Formulas: 0; fig.: 2; tabl.: bibl.: 19.