Theoretical and Applied Economics
No. 2 / 2017 (611), Summer
The main correlations between the monetary-banking indicators
„Artifex” University of Bucharest, Romania
Constantin ANGHELACHE
The Bucharest University of Economic Studies, Romania
„Artifex” University of Bucharest, Romania
Ana CARP
„Artifex” University of Bucharest, Romania
Abstract. At the level of national economy, the essential problem is that of the use of financial resources. Of course, every society has its own resources, but that they are not always sufficient. To operate in a free market economy appears very often need to turn to the Bank's resources in the form of loans. Credit implies the existence of credit resources on the part of the banking system but, at the same time, it raises the question of the relationship between monetary mass in circulation and monetary mass necessary to ensure market equilibrium required. The banking system is defined and represented in the two sub-sectors, namely: monetary authorities that it is a country's National Bank and the system of commercial banks. Great economists have noted that the imbalance between the monetary mass necessary and the monetary mass in circulation may be, at some point, a problematic leading to financial crisis and broader financial and economic crisis. In this article we try to make an analysis based on data sources that stand available to any researcher. Thus, as a first idea, we discuss about the Central Bank's balance sheet, one that offers the possibility of calculating the balance of equilibrium equation which shows a series of correlations are established on the market. The second source of analysis and interpretation of this market is the aggregate balance sheet of commercial banks. Based on this balance sheet is calculated the balance sheet equation which can give an accurate picture on the ratio between the requirements and possibilities. Also, in the article we referred to the monetary situation, especially consolidated monetary situation, one who has existing monetary mass market in passive, and international reserves and net domestic assets, in assets which are and must be in balance, i.e. the two indicators of assets must equal monetary mass so that no imbalances. In the article, we refer to the main correlations between monetary aggregates to embrace the situation at a given time and to be able to conclude that evolution can be perspective in this area.
Contents
The role of fiscal policy in the financial crisis. Challenges and solutions
Using the input-output model in macroeconomic analysis and forecasting studies
Panel causality analysis between exchange rates and stock indexes for fragile five
Modeling of stock indices with HMM-SV models
The impact of private sector credit on income inequalities in European Union (15 member states)
Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis
The main correlations between the monetary-banking indicators
Impact of governance on budget deficit in developing countries
Private equity market developments in central and Eastern Europe
Public-Private Partnerships for clean energy investment in developing and emerging economies: Allocating risks and sharing rewards
Science is measurement, yet not all sciences can be evaluated using the same measurement
The effects of real exchange rates and income on the trade balance: A second generation panel data analysis for transition economies and Turkey
Child policy changes and estimation of income distribution effects
An enquiry into the dynamics of real oil prices: A state space approach
Wage inequalities in Romania under successive adjustments in minimum wage levels
An examination of bilateral J-curve: Evidence from Turkey and her 20 major trading partners
Do military expenditures converge in NATO countries? Linear and nonlinear unit root test evidence
Impact of GDP and tax revenue on health care financing: An empirical investigation from Indian states
The relation between foreign direct investments and some economic indicators. The case of Romanian economy
Economic freedom and foreign direct investment in South Asian countries
New software for identification and evaluation of environmental and waste management in the companies
An analysis of the effect of monetary policy changes on macroeconomic factors
The costs of Brexit for UK economy