MONETARY INDICATORS OF THE FINANCIAL STABILITY OF THE REPUBLIC OF MOLDOVA
MONETARY INDICATORS OF THE FINANCIAL STABILITY OF THE REPUBLIC OF MOLDOVA

Summary/Abstract: The greatest threat to the financial stability of the Republic of Moldova’s transition economy are considered the shocks in the banking sector which could destabilize fiscal and payment system, leading to higher inflation and demonetization of the economy. This can cause a detrimental impact on the rate of the national currency and exacerbate the political situation within the country. An analysis of the international practice concerning monetary system regulation for financial sustainability has been conducted by the authors. In order to assess financial stability on the money market of the Republic of Moldova the following indicators have been used: monetary aggregates; level of monetization of the economy; the level of ensuring the monetary base level of international reserves (gold & external reserves - GER); level of inflation and exchange rate.

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