THE INTERDEPENDENCY BETWEEN THE MONETARY MASS AND THE GROSS DOMESTIC PRODUCT IN ROMANIA
Diana Viorica Lupu, Roxana Angela Calistru, A. Trifu
The aim of this article is to analyze the concepts of monetary mass and GDP in the current context, as being some of the major economic aggregates used by the state to balance the economy, and they also have been main study subjects of many economists for a long time. For this purpose, the monetary mass is presented as the instrument exploited by the national monetary policy to directly exercise its influence, and to accomplish Romania’s compliance to the IMF standards, by imposing the use of a monetary mass structured in three monetary aggregates: M1, M2 and M3. The augmentation of the monetary mass must be directly correlated with the pace of economic growth. Methodologically, the research was carried out as an ideological and quantitative approach, using adequate interpretation and analysis techniques. Based on the data provided by the Romanian National Bank and the National Statistical Institute we have analyzed the evolution of the monetary mass and also the contribution of the demand and offer components to the Gross Domestic Product. The results of our study highlight an increase in monetary mass due to the unequal augmentation of quasi-money and cash, which resulted in a modification of its structure through the enlargement of the cash ratio, in relation to the opposite evolution of quasi-money. In Romania, this increase in monetary mass has not always been closely correlated with the ascendant movement of the GDP.
Key words: monetary mass, monetary basis, GDP, economic growth, quasi-money