ABSTRACT
A powerful political lobby of enterprise managers in Ukraine’s Parliament began to pressure the government, demanding that the money supply increase in pace with a growing nominal Gross domestic product. The country continues to slide, as the government looks more and more like an emergency headquarters, trying to alleviate symptoms but not eliminating the causes of the serious problems of the Ukrainian economy. The Ukrainian way of “saving” the national economy and “protecting” the population through inflation resulted in serious economic decline and falling real living standards. The absence of a mechanism for mutual financial responsibility and accountability has created a Ukrainian hybrid of the private owner—the distorted owner, whose goal is not to manage but to steal. The International Monetary Fund shares responsibility for the crisis because of the exchange rate policy—a policy of currency corridors—it imposed on Ukraine.
