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.
[2] 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.
[5] The coefficient reflects the proportion of the total of goods and services of an economy that is monetized—being actually paid for in money by the purchaser—to substitute bartering.
[13] A small difference indicates that in this country a significant proportion of monetary transactions are carried out in cash, and the banking system is poorly developed.
The ability of the state to borrow money in the domestic market and implement social programs depends on the value of the coefficient.
[11] A high level of economy monetization is typical for developed countries with a well-functioning financial sector.
Demonetization, as a transition from monetary to barter exchange, oftentimes occurs during the periods of military operations and hyperinflation, that is, when money loses its natural role in the economy as a measure of value, means of circulation, accumulation, payment.
The monetary tightening (higher taxes, lower government spending, a reduction in the money supply to prevent inflation, etc.)