If we want growth to accelerate, this ratio will have to go up as a necessary pre-condition. Besides, as our economy goes through a structural transformation, as it should, the share of the industry sector will increase and the credit-GDP ratio will rise even further.
The other is connected to more drawn-out and persistent trends. The latter component demonstrates an empirical association with the trend growth of money on a long-term basis. The short to medium-term “economic analysis” - with its focus on real activity and financial conditions is well equipped to study shorter-run deviations of inflation from its long-term trend.