Department of accounting and statistics

2.Bob.
2.1 monetary policy of the state
Implementation of the state's economic policy of ensuring macroeconomic stability, high rates of economic growth is achieved. Therefore, monetarian politics, in turn, is considered an important direction of the economic policy of the state.
For this reason, monetary policy is defined as “a part of economic policy, employment and the stability of assessments, economic growth and the achievement of such goals as the balance of external payments using the control of the monetary system through the money mass, the level and composition of the interest rate, as well as other indicators“.
In addition to the further development of production areas, it is also important to carry out structural changes in the market infrastructure in raising the economy of our republic. In this system, the banking network, which is considered one of the important components of the financial system, also played an important role, and in the years of independence, a banking system of a new form was formed that corresponded to the requirements of the world. In particular, in our republic, a banking system was established, consisting of a two – tier, that is, a central bank, the main purpose of which is to ensure the stability of the sum in the national currency-and commercial banks, which directly serve the subjects of the economy in the lower tier.The main goal of the central bank is to maintain the national exchange rate in a stable state and thus ensure the stability of prices on the territory of the country.
Today, the most fundamental and important place in the financial credit system of any state is occupied by the central bank, which carries out the official monetary policy. In turn, pulcredit policy, together with budgetary policy, is the basis of nationwide regulation of the economy. In the activities of the central bank, it is impossible to effectively regulate the market economy through monetary policy, without occupying the main tools of pulkredit policy.
The means of regulating the economy through monetary means are extremely diverse. It is characteristic that so far there is no single direction in the categorization of monetary means. But, at the same time, most scholars note the tools listed below as basic monetary policy instruments. Bizham, we have set ourselves the goal of thinking only about the instruments in the general and specific character. The following instruments are used in the implementation of the pulkredit policy of the Central Bank of the Republic of Uzbekistan:
1. Compulsory reserves policy;
2. Account rates policy;
3. Open Market Operations Policy;
4. Currency policy and so on.
The central bank's monopoly on the issue was established by law in almost all states only when issuing banknotes and in some cases coins.
Central banks of developed countries in most cases consider not only the minting of money, but also its design, protection of banknotes, as well as other technical issues. Banknotes are sold to banks nominally, but in some cases the central bank charges a commissioner for providing additional services. For example, the Central Bank of Norway charges a surcharge for supplying banknotes suitable for use in automatic machines (including special packaged coins). One of the important decisions in this direction was the practical steps associated with the gradual liberalization of the domestic currency market by introducing the principles of formation on the basis of market mechanisms of the national exchange rate.
The use of a completely new approach in the formation of the exchange rate, in turn, provides an opportunity to improve monetary policy in connection with the focus of the central bank on price stability in the domestic market.

At the same time, the timely implementation of reforms to liberalize the foreign exchange market is in many ways closely related to the effectiveness of measures to improve monetary policy, strengthen the activities of commercial banks and develop the banking system.

It follows that shortly after the publication of the decree of the president of the Republic of Uzbekistan “on the first-line measures to liberalize the foreign exchange market”, the decree of the president of the Republic of Uzbekistan “on measures for the further development of monetary policy”was adopted, and a complex of measures for the development of monetary policy in 2017-2021 and
One of the next important steps in this regard was the adoption of the decree of the president of the Republic of Uzbekistan dated January 9, 2018 “on the radical improvement of the activities of the Central Bank of the Republic of Uzbekistan”. This decree defines the task of ensuring price stability as the main goal of the Central Bank and provides for appropriate measures to ensure the independence and institutional development of the central bank.
It should be noted that in the new realities that are taking shape during the revision of approaches to the implementation of economic policy, the correct adoption and support of changes in the monetary sphere by the population and business entities is important.
The concept of development and implementation of monetary policy of the Central Bank of the Republic of Uzbekistan in the medium term was developed taking into account the leading role of the communications channel in the formation of public opinion and the implementation of the inflation-targeting regime in practice. The purpose of this concept is to convey to the general public the conceptual framework for the transition to inflationary targeting, as well as the medium-term plans to create the necessary conditions for the successful implementation of this monetary policy regime in practice and explain in detail.
.The role of monetary policy in ensuring macroeconomic stability and development. Ensuring domestic price stability in the country is a guarantee of macroeconomic and social stability and is a necessary condition for the successful implementation of programs for accelerating and developing economic reforms. In this case, low and stable indicators of inflation are considered an important factor in ensuring balanced economic growth, increasing production competitiveness and living standards of the population. In this context, the decline and stabilization of price growth rates should be one of the main goals of State Economic Policy.
A low and stable level of inflation creates the necessary conditions for the transformation of deposits of the population and legal entities into long-term investments and serves for the effective distribution of available economic resources, reducing the price imbalance in the domestic market.
The results of the experiments of central banks of developed and developing countries and the research of international financial institutions indicate the undoubted priority of the goal of ensuring price stability in the implementation of monetary policy.
At the same time, the procedure and sequence of implementation of monetary policy differ depending on the characteristics and structural structure of the economy in different countries.
According to the current law of the Republic of Uzbekistan “on the Central Bank of the Republic of Uzbekistan”, the main purpose of the central bank is to ensure the stability of the national currency. In this case, the concept of” national currency stability " can be interpreted as two types, namely the stability of the exchange rate in relation to foreign currencies or the stability of its internal purchasing power.
In the context of the free formation of the exchange rate, the stability of the national currency is achieved by maintaining its internal harid ability.
In this case, the free-floating exchange rate performs its internal stabilizing function of the economy. In other words, the corresponding change in the exchange rate when external shock and difficulties associated with the balance of payments are observed serves to stimulate enterprises producing exporters and import substitutes.
At the moment, the Central bank provides for appropriate amendments to the legislation in order to prevent the dual understanding of the main purpose of monetary policy and to clearly determine the main direction of its activities.
It should be noted that when it is said that prices are stable, zero-level or negative inflation indicators are not foreseen. When the price stability is said, it is understood that prices do not stand in a stagnant state, but that they grow at a low level. While price stagnation seems acceptable at first glance, low and stable price fluctuations are the most favorable conditions for the effective functioning of the economy. Methods and mechanisms for the implementation of monetary policy (the importance of the transition to an inflationary targeting regime)
The task of ensuring price stability in the domestic market requires a clear strategy and detailed plan for the implementation of monetary policy, and effective instruments and mechanisms for achieving targeted indicators. International experience in using monetary policy regimes
Methods widely used by the central banks of developed and developing countries include inflationary targeting, monetar targeting, exchange rate targeting, and nominal yakorless regimes.
Although the task of achieving the target indicators of inflation is considered the main goal for most central banks, the methods mentioned above differ mainly in terms of operational and intermediate purposes.
Monetar targeting mode:
This method of implementing monetary policy involves controlling changes in the volumes of monetary aggregates, reserve money and money masses in order to ensure price stability.
The effective application of this strategy requires that there be a strong constant relationship between inflation indicators and monetary aggregates. In this case, the target indicators of inflation are achieved by means of maintaining the volume of monetary aggregates at an acceptable level.
The monetary targeting regime was actively used in the United States, Canada, the United Kingdom, Germany, Switzerland, and other developed nations during the 1970s and 1980s. At the same time, the unstable level of demand for money in recent years due to the development of financial markets and the introduction of new financial instruments into practice has led to a decrease in the effectiveness of this method. As a result, it was observed that central banks are limited in their ability to influence the effects of changes in the money supply and ensure the target indicators of inflation. Due to the weakening of the link between monetary aggregates and the inflation rate, the practice of targeting monetary aggregates was abandoned by most centrist banks, causing the introduction of an inflationary targeting regime. The monetary target regime has been extensively diluted as an effective strategy in the early years of economic development in developing and transitional countries where drastic changes in money supply and demand have been observed. It is based on the goals of stimulating economic growth in determining the appropriate indicators for inflation.
Beginning in 1994, the monetary policy implemented in Uzbekistan has also focused on the goals of ensuring the stability of the national currency by preventing a sharp increase in the money supply. In this case, the change in reserve money and money mass was applied as operational and intermediate targets.
Although this regime is officially classified as monetar targeting, due to the fact that in practice the exchange rate of the national currency has been gradually devalued by linking it to the dollar, this regime has been classified by some international institutions and experts as a mixed type.
The exchange rate policy aimed at two goals at the same time showed that external shocks are ineffective in the conditions in which they arise. In this case, on the one hand, the task is to increase gold and foreign exchange reserves, while on the other hand, the aim is to keep the exchange rate of the sum at a certain level. In turn, this exchange rate did not reflect the state of the balance of payments and external economic conditions.
Such a policy, in turn, caused problems in the domestic foreign exchange market and reduced the chances of maintaining an effective monetary policy. In addition, the passive regime of the use of monetary instruments created additional difficulties in the effective application of monetar targeting.
An analysis of the change in the mass of money on the basis of factors indicates that the increase in the mass of money was ensured at different periods by an increase in gold and foreign exchange reserves, as well as an expansion of lending volumes of the economy.
In turn, the balanced implementation of the state budget and the collection of funds in government accounts, as well as the accumulation of funds in the accounts of the fund for reconstruction and development of the Republic of Uzbekistan were among the factors that made the increase in the money supply acceptable.
At the moment, the main sources of lending to the economy were not directly affected by the growth of the money mass in the economy and, accordingly, the level of inflation, due to the fact that it was financed from centralized funds, including the fund for reconstruction and development of the Republic of Uzbekistan, and these funds were used mainly for the purpose of
Due to the fact that banknotes for the central bank are valued as goods, the state benefits from the difference between the money bill and the surcharges that went to it, which, in turn, constitute the main resource (passive)of the bank. Such income does not constitute a large sum in most states, considering the small size of the cash mass.
Banknotes (paper money) can be affected by inflation at the moment. Naturally, this case is characteristic of countries where cash in circulation is noticeable. If part of the banknotes does not return to the central bank (thesis), the state will issue additional means of circulation, which will serve as an impetus for the strengthening of the inflation process.
In accordance with the existing procedures of the central bank for the regulation of pulkredit policy, commercial banks maintain mandatory reserves in the central bank.
The central bank is the body that carries out monetary policy, which is directed to the exchange rate, interest rates, the volume of the total liquidity of the banking system and, naturally, to influence the entire economy. In solving these tasks, the goal lies in ensuring a stable growth of the economy and a decrease in unemployment and inflation. The central bank is usually responsible for ensuring the circulation of money under the charter and the stability of the national exchange rate, for this purpose it tries to align its policies with those of other government bodies. Pulcredit policy is considered the most basic element of the entire economic policy, and often its essence is determined by the independence of the central bank.One of the main aspects of pulcredit policy is the unity of pulcredit and currency policy. The main reason why the central bank does not stop at ensuring the internal stability of the national monetary unit is the manifestation of the purchase and sale of currency directly in the liquidity of the banking system and its dependence on emissions.
There is a" narrow "and" wide " pulkredit policy. In a "narrow" policy, it is understood to achieve the acceptability of the exchange rate using ETF instruments that influence the intervention, accounting rate and short-term interest rate in the foreign exchange market. In "broad" politics, the fight against inflation is understood by influencing the money supply in circulation. The international aspect of pulcredit policy creates a special problem, that is, these are issues of exchange rate, reserves, balance of payments.
A monetary policy must be very clearly separated from the budget and tax policy, including the financing of the state budget.
The central bank, first of all, acts as an intermediary between the state and banks through the economy. As such an institution, it regulates the flow of money and credit through the means allowed by law.
Instruments are divided into the following categories: short-and indirect-term, direct and indirect, general and selective, market and non-specific. As can be seen from the mentioned, the state has the power to regulate market styxia with the help of powerful tools, but it does not oppose market laws, but rather tries to ensure its stability.
The instruments of monetary policy listed here or not are either “expensive” (restrictive) policies or “cheap” money policies, but only those policies can be considered effective when related to fiscal policy and legislation. For example, if a centralized credit plan is valid, population operations are allocated from the operation of enterprises, there is financing of the state budget deficit with emissions or with the withdrawal of resources from the central bank, then it makes no sense to include a system of mandatory reserves.

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