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The Economy monetization is a metric of the national economy, reflecting its saturation with liquid assets. The level of monetization is determined both by the development of the national financial system and by the whole economy. The monetization of economy also determines the freedom of capital movement. Long time ago scientists recognized the important role played by the money supply. Nevertheless, only approximately 50 years ago did Milton Friedman convincingly prove that change in the money quantity might have a very serious effect on the GDP. The monetization is especially important in low- to middle-income countries in which it is substantially correlated with the per-capita GDP and real interest rates. This fact suggests that supporting an upward monetization trend can be an important policy objective for governments.
References
- ↑ "market tightness". United Nations Economic and Social Commission for Western Asia . 17 July 2017. Retrieved 30 May 2021.
- 1 2 Olbrys, J.; Mursztyn, M. (2019). "Depth, tightness and resiliency as market liquidity dimensions: evidence from the Polish stock market". International Journal of Computational Economics and Econometrics. 9 (4): 308–326. doi:10.1504/IJCEE.2019.102513.
- ↑ Olbrys, J. (2020). "Market Tightness on the CEE Emerging Stock Exchanges in the Context of the Non-trading Problem". Advances in Cross-Section Data Methods in Applied Economic Research. Springer Proceedings in Business and Economics. Springer. pp. 553–569. doi:10.1007/978-3-030-38253-7_36. ISBN 978-3-030-38252-0. S2CID 212801466.
- ↑ Carrillo, P.E.; de Wit, E.R.; Larson, W. (2015). "Can tightness in the housing market help predict subsequent home price appreciation? Evidence from the United States and the Netherlands" (PDF). Real Estate Economics. 43 (3): 609–651. doi:10.1111/1540-6229.12082. S2CID 155561559.
- ↑ de Pedraza, P.; Guzi, M.; Tijdens, K. (2020). "Life satisfaction of employees, labour market tightness and matching efficiency" (PDF). International Journal of Manpower.