تحليل و قياس العلاقة السببية بين عرض النقود و التضخم في الاقتصاد الليبي

Abstract EN

The study is intended to analysis the evolution of money supply (MS2) and the inflation (CPI) in the economy Libyan during the study period as well as testing The causality relationship between them during the period from January 2004 - December 2018, where the standard study the method used (VAR) and using coitegration approach and Vector Error Correction Model.

The empirical results based on the error- correction model estimate indicates one- way causality runs from money supply to inflation,, while the causal relationship in the short- run period between offer of the money supply and the inflation addition, the study recommended that deflationary monetary policy should be adopted as a real tool that proved effective in combating inflation in most countries.