Correlation and Regression Modeling of the Influence of Money Supply on the Inflation Rate in Romania

The paper explores the relationship between the money supply and the inflation rate in Romania, focusing on the use of regression methods to model and analyze the influence. The main objective of the study is to assess to what extent changes in the money supply affect inflation in an emerging economy like Romania’s. Using historical macroeconomic data, the regression analysis identifies significant correlations between the selected variables and quantifies the impact of the money supply on price dynamics. The results contribute to the understanding of the economic mechanisms governing monetary policy and provide relevant insights for policymakers in managing inflation and ensuring economic stability. The conclusions indicate a strong link between the growth of the money supply and inflation, with important implications for future monetary policy.