TREASURY BILLS AND REAL ESTATE MARKETS DURING THE MONETARY EXPANSION CONDITIONS (BASED ON THE EXAMPLE OF GEORGIA)

This article discusses on the example of Georgia the influence of monetary impulses towards the treasury bills and real estate market. For this purpose, under the vector autoregressive model has been carried out the reaction functions' study on the impulse. During the study process two types of models have been used. The reason for separation of models was lack of the observations in key variables. The survey/study results showed that money supply shock on government securities interest rates has no significant effect and we can talk about its importance only in the short term, therefore during the medium and long terms the effect of the money volume shock is limited. The survey also shows that the money supply stock's impact on the real estate price index is important. The above-mentioned fully responds to the idea of economic theory of money supply stimulation on the economy in the short term, and the real estate market is no exception also.