تقديرات عرض النقد في فلسطين

Abstract EN

The study of money is prominent in economic and financial studies due to its effect on economic and fiscal variables.

Economy of countries is characterized by cash exchange and capital accumulation.

Money is considered a standard unit by which trade activities and budgets are measured.

Palestine, like other developing countries, is attempting to enhance per capita income, price stability, employment and better balance of payments.

In general terms, Palestine is trying to adopt policies related to both macro economy and micro economy, in order to achieve sustainable development.

The study attempted to estimate amount of local currency that needs to be issued by the Palestinian Authority.

This was achieved by estimating the cash in circulation (cc) outside the banking system.

The study used qualitative and statistical analysis; the qualitative method reviewed developments in using Money supply indicator (M1) in neighboring countries.

Statistical analysis is used to analyze various monetary variables to arrive at an estimate ofmoney supply (M1) in Palestine.

This study comprises four main sections; the first reviews money supply literature, the second discusses money supply in neighboring countries like Jordan, Egypt and (Israel), the third tried to establish an estimate of the needed money supply in Palestine, while the last section contains conclusions recommendations.

The study recommends that the proposed scenario is the most viable option.

The proposed scenario in estimating the (cc) and the money supply (M1) produced a realistic estimate that complies with the actual economic conditions in Palestine.

The current economic situation is dominated by continuous increase in the GDP, which conforms to the gradual increase in the estimated money supply and the increasing confidence in the Palestinian banking system, reflected by the increase in DD (Demand Deposits).

The estimated money supply produced by the proposed scenarios amounts to 51% of that of Jordan, which shows again that this proposed scenario is realistic.