Money Supply, Financing and Economics Growth: Evidence from the NBC Central Bank Functions

Abstract

Importantly, Central bank is a critical functional to play in supporting economic growth like as economic agent of development delivers on its commitment to necessary fiscal consolidation of the national economy. This paper only examines money supply and financing of the National Bank of Cambodia, its results stimulate growth of the productive sectors. I used the time series, regression method, ratio method to find the significant relationship money supply, financing, and economic growth, how the central bank functions effect on the economic growth, as well as, its impetus was found that a strong positive linear relationship of money supply, financing on the economic growth that reliance on outputs of the times series, ratios, and regression model that is confirmed by coefficients valued at 0.829578, 0.727115 and adjusted R-squared valued at 0.995515, 0.991338, it means equal a unitary. It is a significance of the level at P < 0.05; the results reveal the positive relationship money supply, financing which shows a significant influence or impact on economic growth. The paper goal gives the central bank policy makers to map out the standards of monetary policy functions to make better the extent of money supply, financing in order of accountability, transparency, and in addition the efficiency, to avail the potential communications for the economic growth.

Keywords: Money Supply, Financing, Economic Growth, National Bank of Cambodia (NBC)