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The Relationship between Real Exchange Rate and Components of the Broader Measure of Money Supply An Analytical Study on the Libyan Economy for the Period of 1970 – 2014

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dc.contributor.authorMohamed Ali S. Ajredien_US
dc.contributor.authorAbdullah Mohammed Ahmed Ayedhen_US
dc.contributor.authorMohamad Sabri Haronen_US
dc.date.accessioned2024-05-28T04:29:48Z
dc.date.available2024-05-28T04:29:48Z
dc.date.issued2017
dc.description.abstractThe Libyan economy had achieved a level of growth and stability for its currency exchange rate through the plans of development using fiscal, monetary and trade expansionary policies. However, due to the instability witnessed by Libya in the recent years, as well as the decline in the volume of oil revenues, this has led to a remarkable deterioration in the exchange rates of the Libyan currency. Therefore, the main objective of this study is to determine the effect of monetary expansion on the stability of the real exchange rate in the Libyan economy, relying on annual data covering the period of 1970 – 2014, which is represented in the variables (Currency in circulation, demand deposits and quasi- money), using time-series analysis techniques through Johnson’s test of the joint integration, which has shown the results of a long- term negative equilibrium relationship between variables in line with economic theory. Granger causality test has been applied as well, where the results have shown that there is a causal relationship in one direction between the real exchange rate and both currency in circulation and demand deposits in the short term. Based on these results, the study concludes that it is possible to control the stability of the real exchange rate of the Libyan dinar through the components of broader measure of money supply.en_US
dc.identifier.citationJournal of Insurance and Financial Management, Vol. 3, Issue 3 (2017) 44-72en_US
dc.identifier.epage72
dc.identifier.issn2371-2112
dc.identifier.issue3
dc.identifier.other1808-31
dc.identifier.spage44
dc.identifier.urihttps://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/83
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/5757
dc.identifier.volume3
dc.language.isoenen_US
dc.publisherJournal of Insurance and Financial Managementen_US
dc.relation.ispartofJournal of Insurance and Financial Managementen_US
dc.subjectJoint Integrationen_US
dc.subjectLibyan Economyen_US
dc.subjectReal Exchange Rateen_US
dc.subjectMonetary Expansionen_US
dc.titleThe Relationship between Real Exchange Rate and Components of the Broader Measure of Money Supply An Analytical Study on the Libyan Economy for the Period of 1970 – 2014en_US
dc.typeArticleen_US
dspace.entity.typePublication

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