Monetization rate goes beyond 20% for the first time in Azerbaijan

Monetization rate goes beyond 20% for the first time in Azerbaijan
# 19 September 2008 13:01 (UTC +04:00)
The central bank said money supply M2 reached AZN 5 221.7 million during January-July, its ratio to GDP for this period stood at 22.6%.
The M2/GDP ratio measures the extent of monetization of the economy, and is the first symptom of liberalization, and inflation measures price instability in the economy.
This ratio makes 80-100% in the developed countries. It is low in Azerbaijan but the upward trend is quite good.
In economics, money supply, or money stock, is the total amount of money available in an economy at a particular point in time.
M2 is M1 + time deposits, savings deposits, and non-institutional money-market funds. M2 is a broader classification of money than M1. Economists also use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. M2 contains cash and assets that can quickly be converted to currency.
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