Ivan Milenković, Branimir Kalaš, Jelena Andrašić

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Monetary policy is an important segment of the economic policy of each country where inflation and monetary aggregates represent its significant components. Their movement reflects the trends in the volume of money and the price level which is of great relevance for the economic situation in the country. The aim of the paper is to manifest the impact of macroeconomic indicators on the real gross domestic product. In this paper, inflation (INF), monetary aggregate (M3), public expenditures (PE) and foreign direct investment (FDI) are used as independent variables, while the gross domestic product is determined as a dependent variable. The results showed that there is a positive relationship between GDP and INF, PE and FDI, but it is statistically not significant. On the other hand, M3 has a negative impact on GDP, it is statistically significant. Using correlation matrix, a very high correlation between INF and PE was found, while the lowest correlation was recorded between GDP and INF.


gross domestic product, inflation, monetary aggregate, public expenditures, foreign direct investment, Serbia

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