Abstract
The aim of this paper is to assess the endogenous and exogenous approaches on the money creation process on empirical grounds, through analysis in the case of the Republic of Macedonia. Using the ARDL econometric model, it has been determined that the money supply in the Republic of Macedonia in the period January 2003 - August 2018 is endogenously determined in the long run. The empirical results in the short term show bidirectional causality between deposits and monetary base, as well as between deposits and loans. However, in the end, the central bank in the Republic of Macedonia has an influence on the money supply. The exogenous monetary policies based on money supply control, can positively influence the amount of liquidity held by commercial banks and, hence, increase the supply of loans, but the demand for loans is still important when stimulating the entry of liquidity in the real economy.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
