تقدير دالة الطلب على النقود في ليبيا : بتطبيق أسلوب ARDL

Abstract EN

This study has examined both the determinants and stability of the demand for money function in Libyan economy over period (1985-2010).

We employed ARDL approach to test the long run and short run dynamics.

The ARDL method does not require rule of the same order of integration for variables, unit root pre- testing is not required as well.

According to results we found a long run and short run relationship between money aggregate and independent variables.

therefore all the estimated coefficients of included variables are consistent with economic theory, that is, income elasticity is positive and significance, but inflation and exchange rate have a negative elasticities and significant.

The main conclusion od this study is that, after incorporating the cusum and cusumsq tests reveal that the M1 money demand function is stable over the period under consideration; hence, monetary policy will be effective in managing the economy.