Analysis of Factors Determining Lithuanian Money and Capital Markets' Interrelation

The article focuses on the analysis of the problem of Lithuanian money and capital markets' interrelation and its factors. At the most part of investigated countries the share index and the overnight interest rates have been developing in expressly opposite directions, i.e., the two markets, the capital and the money markets operated as fierce competitors. In Lithuania the correlation dependence of the share index and overnight interest rates was not established which makes the situation in Lithuania different from that in other, among them and in Eastern European, states. The correlation analysis carried out by the authors of the present paper within the period under examination (1994–2008) showed that a number of factors, such as consumer price index, the gross domestic product, the gross public debt in ratio to the gross domestic product, foreign direct investment, unemployment level in most general cases affect the capital and money markets in different manner and thus produce a diversified effect upon the competitive environment