The money market model simulation on the example of the Russian Federation

This article describes Money market model on the example of the Russian Federation. This model was chosen because it takes into account significant indicators of the capital market. Reduced form of the model is based on the indicator of gross domestic product and shows its dependence on such factors as money supply and domestic investment. Russia was chosen as analysed country to calculate the impact of variables on gross domestic product and to analyse their time dependence. Russia has a fairly stable growth rate, which dropped dramatically in 2009 and 2015, despite the growth of the money supply. In this connection we have analyzed what levers of influence on the economy determine its growth. The analysis shows that money supply doesn’t influence GDP but there is a strong positive correlation between GDP and the volume of investment.