Preface

This publication is a collection of analytical materials (reports and articles), which, in essence, is a follow-up to the previous (the Spring of 2017) publication of the Razumkov Centre "Challenges and Risks of Crisis Processes in Ukraine and Directions of Economic Policy to Prevent Them".

Meanwhile, further spread of globalisation requires more attention both to internal factors of fiscal and macroeconomic balancing, and to external factors of economic growth and development, first of all - in support of international trade and investment. In addition, external economic components and indicators are directly related to the domestic economy, while macroeconomic balancing requires rational and consistent use of instruments of monetary, fiscal and structural policies.

This publication presents the position (articles) by different prominent national experts regarding complex, often contradictory, processes and trends in both foreign economic and integration spheres, as well as monetary and fiscal components, including those that directly affect or manifest themselves in the Ukrainian economic environment.

Amid rapid global transformations, the relevance of finding fundamentally new theoretical foundations to form an effective economic policy for ensuring the welfare of the state as a holistic socio-economic unit is becoming increasingly important, as discussed in detail by Yuriy Bazhal, "Innovations as Stem Cells of Economic Growth".

The article by Olena Bereslavska "Perspectives of Stabilisation of the Hryvnia Exchange Rate in the Context of Global Economic Trends", on the basis of the analysis of the balance of payment, consistently shows how Ukraine's economic development requires a stable or rationally predictable dynamics of the hryvnia exchange rate.

The article by Valentin Vishnevsky and Natalia Sheludko titled “Monetary Power of the World in the Conditions of ‘New Normality': The Alignment Of Forces And Future Prospects" describes the contemporary controversial processes and tendencies in monetary policy, which, combined with political aggravations, increase the risks of economic and financial shocks, as well as outlining directions for overcoming them.

The assessment of the business climate in Ukraine based on the survey of managers of the largest Ukrainian enterprises that are members of the European Business Association, is presented in the Anna Derevyanko's article "Investment Attractiveness of Ukraine: A Business Perspective. Investigation of the Investment Climate in Ukraine".

The article by Anatoliy Drobiazko and Oleksandr Lyubich "Ukraine 's Economic Security Indicators as Crisis Management Tools"provides a detailed study of key indicators of economic security to promote a consistent rational policy in pursuit of a sustainable economic growth.

Tetyana Yefymenko in her article "Fiscal Regulation Reforms in Ukraine" proposes system-forming tasks of fiscal regulation aimed at improving the business climate in internal and external market segments.

An analysis of a seven-year US stabilisation policy in overcoming the financial and economic crisis of2008-2009 is presented in the article by Sergey Korablin "The Great Neo-Liberal Recession (2008-2009): Experience and Lessons Learned from the US Crisis Policy".

The article by Igor Mantsurov, Dmytro Mantsurov and Yana Khrapunova, "New Approaches to Countering Global Socioeconomic Challenges as the Basis for Overcoming a Pathological Phenomena in the Development of the Ukrainian Economy", based on the analysis of crisis processes, develops ways to prevent reaching a critical condition of the national economy.

Institutional basis for the establishment and application of the so-called virtual currencies (crypto currency), as well as their legislative approval in Ukraine are considered in the article by Yuriy Prozorov "Digitalisation: Speculation or the Means to Transform the Economy?".

Tantely Ratovohery in the article titled "Ukrainian Choice and Asian Challenge"analyses current trends in the world trading system, as well as Ukraine's place in it. The article emphasizes that increasing the sustainability of the country's economy and improving its position requires a number of strategic decisions that are aimed, first of all, at modernising foreign economic structure.

Factors and constituents of Ukraine's integration into the European Union, as well as further tasks aimed at expanding and strengthening domestic integration processes are the main focus of Boris Sobolev's article "Integration into the European Union as the main Path to Reform and Structural Changes in Macroeconomics".

Svetlana Chekunova's article "Basic Aspects of Energy Policy China and Tasks for Ukraine " deals with new challenges related to energy and economic flows, as well as policies aimed at reducing their pressure on national economies, in connection with China's initiatives in the national energy sector.

In the article by Oleksandr Sharov "Foreign Exchange Aspects of Ukraine's Monetary Policy", among the main issues are the deteriorating currency relations, which are due to a deepening crisis in global foreign exchange market, as well as increasing importance of currency regulation in Ukraine, related to a deepening integration of the country into the international economic system.

The Analytical Report "Factors and Components of Structural Changes in the World Economy and its Consequences for Ukraine" presents the latest trends in trade and investment flows prompted by the increased economic confrontation between the two biggest economies - the United States and China, as well as taking into account the on-going and future integration processes fundamental for the acceleration of Ukraine's economy. Also, the publication presents the results of the Razumkov Centre's nationwide sociological survey on how the Ukrainians perceive short and medium term prospects of Ukraine's economic development.

We hope that the opinions and proposals on the ways to accelerate economic development expressed in this publication will reverberate in the activity of the Ukrainian political elite, and foster economic development and well-being.

Anatoliy Rachok,

Director General of the Razumkov Centre