Fiscal determinants of income velocity of money in Libya (1970-2010)‎

Abstract EN

The main objective of the study is to examine the financial determinants of the velocity of money in Libya.

For this purpose, we used the time series data from 1970 to 2010.

By applying the cointegration test to estimate the long-term relationship of the determinants of the velocity of the money, and we using the ARDL method.

The results indicate that the velocity of the money will increase with the rise in government spending and the same with the long-term rate of exchange.

On the other hand, government revenues and money supply have a negative role with the velocity of money in Libya.