A B S T R A C T

The purpose of the research - is to examine, alongside the formation of GDP in Azerbaijan, the most significant factors influencing this system (primarily oil and the volume of money), and to determine the positive and negative outcomes that may arise both under proper management of the real money supply and in situations where it is either excessive or insufficient.

The methodology of the research - in order to investigate the multi-directional effects of money supply, the methods of analysis, synthesis and secondary data analysis were used.

The practical importance of the research - the results of this research are useful for scientists, politicians, analysts, financial institutions, stakeholders in the economy sector to conduct macroeconomic analysis, formulate policies, correctly forecast the real money supply, can be used to create model based on the relationship between GDP and factors that can affect it.

The results of the research – this research significantly emphasizes strategies to control the volume of money supply in the country, to develop sound policies and practices, to increase the volume of GDP and to manage the dangerous consequences that arise and are inevitable in this environment.

The originality and scientific novelty of the research – the research highlighted the comparative analysis of the money supply and its aggregate states between the borders, the development of financial markets, especially the improvement of the mechanisms for directing financial resources to the real economy, can contribute to the general well-being of the economy.

Keywords: M0, M3, repo rate, hybrid inflation, monetary factors, economic growth.

http://doi.org/10.59610/bbu4.2025.4.4