Key Takeaways from the NBU’s 10th Annual Conference: Economic Shocks, Trust, and Ukraine’s Global Support

National Bank of Ukraine Engages with Kyiv School of Economics Students

According to НБУ: On October 8, Andriy Pyshnyi, Governor of the National Bank of Ukraine (NBU), along with Oleksandr Farina, Head of the NBU’s Research Department, held a session with students from the Kyiv School of Economics. During this meeting, they shared insights from the 10th Annual Research Conference (ARC). The discussion summary was published on LB.UA as part of the “30 Years of the Hryvnia” project. Key topics included the significance of the conference, the evolving nature of economic shocks, the critical role of trust in the NBU, and the ongoing international support for Ukraine.

The NBU views these annual conferences as vital platforms for expert analysis and an essential aspect of economic diplomacy. Oleksandr Farina highlighted that economic shocks have become more frequent and can now be assessed by their frequency, severity, and impact. Unlike in the past, when shocks were seen as isolated events and often excluded from data, researchers today focus on measuring them. Traditional categories such as demand, supply, or financial shocks no longer fully capture the complexities of current challenges. For example, an existential shock like a full-scale war fundamentally transforms the entire economic system.

Building Trust and Securing International Backing

Trust is among the most valuable assets for a central bank. Andriy Pyshnyi emphasized:

“Trust depends directly on independence. It empowers us to say ‘no’ when necessary and to make decisions that may not be popular but have a meaningful impact.” – Andriy Pyshnyi

International support remains crucial for Ukraine’s stability. Therefore, trust is essential not only for citizens and businesses but also for global partners. Research presented at the conference demonstrated that without trust, price pass-through from exchange rate changes triples.

Pyshnyi also noted the unprecedented challenge of managing a central bank during a full-scale war, stating, “There is no textbook guiding us on how to best operate under these conditions – we are writing it as we go.” Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), underscored the need for international assistance and reinforced that trust in the NBU is vital for domestic and foreign stakeholders alike.

This engagement between the NBU and Kyiv School of Economics students highlights the importance of involving young economists in critical economic discussions amid Ukraine’s ongoing challenges. Developing strategies to manage the economy effectively during wartime and strengthening trust in the NBU are priorities for stabilizing the country’s financial system and attracting international investment.

As the National Bank of Ukraine navigates the complexities of economic shocks and the importance of trust, it is equally crucial to consider the broader context of Ukraine's financial integration. Insights shared by Andriy Pyshnyi at the recent IMF and World Bank meetings shed light on the pressing funding requirements and the path towards deeper integration with European structures. To explore these vital discussions further, see how they align with the ongoing efforts to stabilize Ukraine’s economy through international cooperation and support in our detailed coverage of the financial integration and funding needs at the global level.