In this paper, we have investigated the dependence of money demand based on GDP and the real interest rate in Romania during 2001-2011. After determining the regression equation, an apparently surprising conclusion is that the most influential factor in the demand for money is the level of GDP...

The model presented in this article is an adaptation of the IS-LM model for an open economy in which both the static aspects and dynamic ones are approached. Also, based on the model built, it is determined the level of potential GDP and the natural unemployment rate. The determination of...