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Abstract EN

The demand for money is an important pillar of macro-econometric models.

This paper aims at specifying and estimating econometric model assists in estimating the optimum level of liquidity required by the Sudanese economy taking into considerations that many attempt has been done in this respect but the results were not satisfactory since the difference between the estimated growth rate of money supply and the actual.

A simultaneous model will be specified and estimated containing eight equations of money supply components aiming at formulating effective policies.

The research contains the following sections: literature review containing theories of demand for money and empirical studies, proposed model, results, and conclusion.