The Level of Monetization of the Economy as an Indicator of the State of the Financial System: Overview of World Practice

The level of development of the state's economy is reflected in the indicator of gross domestic product, the formation of which is influenced by many factors, including a very extensive parametric block of the financial system, including the circulating amounts of money. In this context, the closest relationship is manifested in the resulting indicator – the level of monetization of the economy, which can be considered both as an assessment of the saturation of the economy with liquid funds for GDP growth, and as an assessment of the development of the financial system as a whole (including areas of regulation of monetary indicators and financial market indicators). The article provides an analytical review of the qualitative and quantitative significance of the level of monetization of economies with an emphasis on the indicator of the development of financial systems. The authors consider the dynamics of liquidity adequacy provided by the financial system in four directions: in general, according to the indicator of the level of monetization of the world economy, as well as on the basis of existing approaches to the classification of countries of the world, by geographical region (according to the UN classification methodology), depending on income level (World Bank classification methodology) and level of development (IMF classification methodology). The study uses empirical data for 2000–2024. Along with the generally accepted research methods, the authors propose the use of thermal analysis techniques. The result of the analytical review showed global changes in both the hierarchy of the world's economies and in the vector of development of the financial systems of states.