Keyword: «money supply»

The aim of the study is to assess the influence of bank crediting on G.D.P. and money supply in modern Russian economic conditions. The article studies the positive and negative directions of credit influence on the national economy. Based on the construction of regression models, the authors draw a conclusion about the significant influence of bank lending on G.D.P. and the money supply in the study period.

In a national economy, there are many causal relationships. A special place among them is occupied by dependencies between macroeconomic markets. This article attempts to consider the dependencies between money and commodity markets in the Russian economy over a sufficiently long 20-year period, broken down by decades 2000–2009 and 2010–2019. As a result of studying empirical material, it turned out that the dynamics of real GDP in our country very seriously depends on the dynamics of real money supply. Business entities respond to an increase in the real amount of money in the economy by increasing the number of transactions in which they participate, which leads to an increase in real GDP. The elasticity set over 10-year periods, however, is quite stable, but noticeably less than unity. In the decades under consideration, there is an opposite relationship between the change in money supply and the interest rate of the Central Bank. However, in general, the effect of changes in the net price of money on the dynamics of GDP is practically absent, which can only be explained by the absence of a real effective mechanism for the effect of a decreasing net interest rate on the behavior of producers and consumers. The creation of such a mechanism may, in our opinion, lead to a noticeable acceleration in the growth rate of real GDP even with a sufficiently low positive interest rate of the Central Bank.

The problem of determining the amount of money supply required in circulation became the most urgent after the collapse of the Bretton Woods monetary system. This is because the exchange rate has become directly dependent on the produced GDP. If earlier the circulation of money was ensured by gold, now the Central Bank started to regulate money supply began. Thus, the regulation of the money supply has become a function of public policy. The purpose of this work is to study the influence of the GDP monetization level on macroeconomic indicators. The study revealed that the economy of developed countries is characterized by high monetization rates. Saturation of the economy with monetary funds at high growth rates of the gross domestic product does not cause significant inflationary processes, but significantly stimulates even greater economic growth.

This article discusses the development of the monetary system in the Russian Federation in 2014–2019 and its structure.

The article presents an analysis of the interrelationships of inflation, money supply and GDP dynamics; describes the impact of central bank interest rates and inflation target on the economy. As a result of the conducted research, the author concludes that there is a connection between the dynamics of GDP and the influence of inflationary trends and the monetization of the economy on it.