إختبار استقرارية دالة الطلب على النقود في الاقتصاد الليبي (1970-2010)‎ بإستخدام منهجية ARDL

Abstract EN

The study aimed to verify the stability of the function of demand for money in the Libyan economy, and the possibility of using money supply in the broad sense (M2) as an intermediate variable for monetary policy, in order to achieve the goals that monetary policy seeks.

In this study, the ARDL methodology was used to test the co-integration of the model variables, because it does not require that the variables be integrated of the same order.

The results indicated that the explanatory variables become stationary when the first differences are taken, except for the variable (M2), which was stationary at the level.

the results also indicated that the best formula for estimating the demand function for money in the broad sense is the logarithmic formula.

The results also proved the existence of a direct relationship between Demand for money and both real income and financial innovations.

While the demand for money has an inverse relationship with both the inflation rate and the velocity of money.

The results also indicated the existence of a long- and short-term equilibrium relationship between the explanatory variables and the dependent variable, and the value of the error correction (ECM) indicated that (0.739) of the errors in the short term are automatically corrected to reach equilibrium in the long term, which requires about one year and three months, The results also proved that the demand function for money is stable in both terms.