In the professional literature shows

In the professional literature shows that in the 1990s to the economies of the absolute majority of countries with high GDP monetization was characterized by a favorable combination of economic growth and inflation. Note that the monetization of the economy and its level of saturation with money directly connected with such an important concept as a "financial depth» (financial depth), which characterizes the ratio of the volume of emergency vehicles and GDP. It was introduced in 1980 by the World Bank to show the relationship between the saturation of the economy with money, development of financial and monetary systems, on the one hand, and economic growth - on the other [30. 256]. With reference to the study by the World Bank as a trend are examples of countries to formulate a thesis generalizes the higher the intensity of the economy and the financial resources of money, the higher rates of economic growth because there is diversifikovanishim demand for money, become more powerful financial and cash flows are to be reallocated in the economy and finances of its development, there is no artificial scarcity of money, limits investment infusion, etc. Without going into detail on the research questions and monetization features of the formation of supply and demand in the money market, note that in Ukraine real GDP growth from 6 to 12% during 2000-2004. Happening in terms of growth rate of financial depth from 6 to 17% increase in real money supply and the level of monetization - from 16 to 32%. Note that changes in money supply should be consistent with the dynamics of GDP and related inflationary pressures. However a significant increase in monetary aggregates was observed against the background of a significant slowdown in real GDP. Thus, during the years 1993-2004 the volumes were reduced to 87% from 1993 levels, while the real cash balances (M0) for this period increased by 7.58 times, M1 - a 4.74-fold, M2 and M3 - more than 6 times. The highest rates of real money supply rose in 2001 to 2002, reaching a level of 35-43% annually. In 2003-2005, these rates have declined slightly - to 13.5% per year. Note that for more accurate calculations according to changes in money growth in real GDP is advisable to use data on the amount of money is not the end of the year, and monthly averages. Incidentally, this is due to the fact that in certain periods (1992-1994). There were considerable fluctuations in its volume. Thus, in the IV quarter of 1992, M2 increased by 6.1 times, in the III quarter of 1993 - 1.9 times. In this context I would also draw attention to the fact that in 2005 the growth of cash while reducing the rate of GDP and slowing the rate of rotation of the money supply created additional inflationary risks. The growth rate of cash in January - August 2005 (27.1 for the period) is significantly higher than the corresponding figures for the years of economic growth. Topic: A PRACTICAL ANALYSIS OF MONETARY ISSUE | Tags: analysis, issues