Rapid Response Economics
Post-war macroeconomic framework for Ukraine
More than 500 days since the start of the full-scale Russian invasion in 2022, the scale of destruction in Ukraine is staggering. However, it is vital to develop plans for Ukraine’s reconstruction so that the recovery can start as soon as possible. This report proposes a macroeconomic framework for the post-war period that can support a successful recovery. The report stresses that sustainable public finances, sound monetary policy, a predictable and fair regulatory framework, and flexible labour markets provide the foundation for the success of human capital development, foreign direct investment, technological leapfrogging, and many other elements of reconstruction. An overarching objective of these policies is to deliver a stable macroeconomic environment that can facilitate the flow of resources to most efficient uses and to lay foundations for durable economic growth.