The Impact of Interest Rate Spread and Money Supply (M2) on Economic Growth – A Study in 40 Selected Nations

Abstract

The goal of this research study is to look at how the Interest Rate Spread and Money Supply (M2) affect Economic Growth in different countries. We evaluate the literature on conducting research to investigate the impact of independent variables and control variables on economic growth. The research spans 40 countries from 2001 to 2021 and is divided into three groups: Developed Countries, Developing Countries, and Emerging Countries. The findings confirmed that the Interest Rate Spread and Money Supply (M2) have a positive impact on Economic Growth. These results imply that expantaionary mometery policy supports economic growth. The positive relationship between interest rate spread and economic growth confirmed the the importance of the banking sector in the economy.