Index of the Cycle of Money - The Case of Montenegro

This paper examines the concept of the cycle of money in an actual case scenario like the economic system of Montenegro. The calculations of the index of the cycle of money of Montenegro are compared with the global average index of the cycle of money . The results show that Montenegro is below the average global value, but it is above the critical level of 0.2, meaning that the economy can face an economic crisis. Therefore, Montenegro’s results show that it is a well-structured economy and is able to deal with the economic crisis. The applied methodology stands on the analysis of the theory, mathematical, statistical, and econometrical results. The work makes analysis of the strength of Montenegro’s economy in a potential crisis. These results are from a project for multiple countries and this is the only study until the present time about this country’s index of the cycle of money . The period that adjusted for compilations is the global recession period of 2012 - 2017