Monetary institutions play a key role in implementing monetary policy and achieving macroeconomic goals. The central monetary institution in most economies, including the Republic of Croatia, is assigned to the central bank, which, along with numerous other instruments and policies, implements monetary policy through the authority to issue coins and paper money and control deposit money through the system of required reserves. Deposit money is issued by commercial banks, which use the multiplier system to place the collected deposits in the form of loans. In order for monetary policy to be implemented adequately and successfully, it is necessary to monitor numerous economic indicators, and in this paper the following indicators of the Croatian economy are analyzed: money supply M1, nominal GDP of the Republic of Croatia, movement of money supply M1 and its components, sectoral distribution of money supply M1, money supply of the Croatian economy and income velocity of money V1 and V2. The obtained results show that in the observed period both velocities of money are decreasing, while the supply of money of the economy is satisfactory and increasing. The reason for this is that in the observed period, the amount of money M1 in the Croatian economy grew faster than GDP, which indicates that the money actually sits in bank accounts, that is, it does not end up in the economy in the form of consumption or investments.