IMPROVEMENT OF MONETARY LEVERS AND INCENTIVES TO INCREASE THE COMPETITIVENESS OF BUSINESS ENTITIES IN UKRAINE
Abstract
The study aims to justify the theoretical and methodological foundations and to develop an infological model for improving monetary levers and incentives to enhance the competitiveness of business entities in Ukraine. We find that the effective functioning of entrepreneurial structures largely depends on the predictability and adaptability of monetary policy, which integrates into the national strategy for sustainable development. We propose an infological model for improving monetary levers and incentives, which includes five interconnected blocks: input parameters, monetary levers, monetary incentives, transformation processes, and expected outcomes. We demonstrate that the effective use of the discount rate, reserve requirements, currency regulation, interest rates, and open market operations contributes to the stabilization of the financial environment and stimulates business development. We argue that, under conditions of war risks and global economic uncertainty, the strategic combination of a predictable monetary trajectory with targeted fiscal and investment programs reduces the cost of capital, expands long-term resources, and ensures sustainable recovery of entrepreneurial activity. We integrate international experience, particularly from EU countries, with national economic specifics to enhance the effectiveness of monetary transmission mechanisms and improve the predictability of the environment for investors and businesses. The study results have practical significance for designing strategic decisions in monetary policy, adapting fiscal instruments, developing the capital market, and implementing macroprudential mechanisms that support innovative transformations, ecological orientation, and expanded investment opportunities for business entities. The proposed model can serve to increase the efficiency of state regulation, ensure macroeconomic stability, and support the competitiveness of national business under economic and geopolitical challenges.
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