The Relationship Between Money Supply, Public Expenditure, and Gross Domestic Product An Applied Study on the Libyan Economy (1992–2024)

Abstract

This study analyzes and identifies the direction of the relationship between money supply, government spending, and GDP in Libya during the period 1992-2024. This study explores the most important fiscal and monetary policy tools that influence GDP growth rates. The study adopted the standard approach using the Autoregressive Distributed Lag (ARDL) model to explain the relationship between the study variables (money supply, government spending, and GDP). The study found a direct relationship between money supply, government spending, and GDP, and a long-term equilibrium relationship between the study variables.