Exploring the Relationship between Credit and Nominal GDP

Mardi | 2015-05-05
Sully 5, 16h-17h20

Gancho GANCHEV – Vladimir TSENKOV – Elena STAVROVA

The functions of money as medium of exchange and unit of account are closely related to the problems of relative prices formation and the value of money itself. Rejecting the classical dichotomy, we can assume some interaction between the real and the monetary sectors. Following the new trends in monetary theory we focus on the nominal macroeconomic parameters. In particular, econometric research is carried out in order to reveal the relationship between the nominal GDP growth and the total credit in the countries of Central and Eastern Europe. The objective is to measure the level of dependency and the nature of the relationship between these important macroeconomic variables.