<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The economic activity generates two types of flows: flows of goods and services and cash flows. These two types of flows generate two types of circuits in the economy, flows of goods and services generate the circuit corresponding to real economy and monetary flows (incomes and expenditures) generate the monetary - financial circuit. The monetary circuit is fundamentally determined by the level and structure of real economy. Comparing production revenue used for consumption with the amount of products and services produced and purchased, an average pricing is obtained. Unless the condition that the revenues generated in the economy are equal to production, it will lead to rising prices, i.e., inflation. Therefore, an adequate correlation between financial flows and real economy must be ensured. From this perspective, were analysed countries from European Union over time, using panel analysis.</p></abstract>

The economic activity generates two types of flows: flows of goods and services and cash flows. These two types of flows generate two types of circuits in the economy, flows of goods and services generate the circuit corresponding to real economy and monetary flows (incomes and expenditures) generate the monetary - financial circuit. The monetary circuit is fundamentally determined by the level and structure of real economy. Comparing production revenue used for consumption with the amount of products and services produced and purchased, an average pricing is obtained. Unless the condition that the revenues generated in the economy are equal to production, it will lead to rising prices, i.e., inflation. Therefore, an adequate correlation between financial flows and real economy must be ensured. From this perspective, were analysed countries from European Union over time, using panel analysis.

Statistical and econometric analysis of the correlation between financial transactions and real economy

Proceedings of the International Conference on Business Excellence

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The economic activity generates two types of flows: flows of goods and services and cash flows. These two types of flows generate two types of circuits in the...

Statistical and econometric analysis of the correlation between financial transactions and real economy

Published Online: Jun 15, 2018

Page range: 70 - 79

DOI: https://doi.org/10.2478/picbe-2018-0008

Keywords
real economy, financial transactions, panel data, GDP, unemployment rate, labour productivity, balance of payments

© 2018 Simona-Andreea Apostu, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Statistical and econometric analysis of the correlation between financial transactions and real economy

Published Online: Jun 15, 2018

Page range: 70 - 79

DOI: https://doi.org/10.2478/picbe-2018-0008

Keywordsreal economy, financial transactions, panel data, GDP, unemployment rate, labour productivity, balance of payments

© 2018 Simona-Andreea Apostu, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
real economy, financial transactions, panel data, GDP, unemployment rate, labour productivity, balance of payments