The Causal Relationship Between Oil Prices and Money Supply in the Libyan Economy During the Period 1970-2025
DOI:
https://doi.org/10.65405/rawkht84Keywords:
Oil Prices, Money supply, Libya Economy, Co-integrationAbstract
The current research analyses the causal relationship between oil prices and money supply in Libya economy ranging from 1970 to 2025, co-integration approach was adopted in this research by using Engel-Granger method, error correction method, and Engle causality to identify the co-integration relationship between oil prices and money supply in the long and short run and their directions. The study resulted that there is no causal relationship between oil prices and money supply in the long and short term.
Downloads
References
مصرف ليبيا المركزي، التقرير السنوي، أعداد مختلفة.
منظمة الأوبك، التقرير السنوي، أعداد مختلفة.
ثانيًا: المراجع الإنجليزية
Abokwah, A. A. (2019). Effect of oil price shock on monetary policy in Nigeria: A Vector Autoregressive Analysis. International Journal of African Development, 5(2), 82-90.
Alzyadat, J. A. (2024). The oil price shocks and the monetary stability in Saudi Arabia. International Journal of Energy Economics and Policy, 14(6), 32-39.
Bin Amin, M. F., & Rehman, M. Z. (2022). Asymmetric linkages of oil prices, money supply, and TASI on sectoral stock prices in Saudi Arabia: a non-linear ARDL approach. SAGE Open, 12(1), 1-17.
Bjørnland, H. C., Cross, J. L., & Hölz, J. (2025). Re-visiting the Relationship Between Oil Prices and Monetary Policy CAMA Working Paper 19/2025 April 2025.
Dwomoh, E. O., Nkuah, J. K., & Forkuo, G. O. (2025). Cedi depreciation and petroleum price shocks: economic interlinkages and macroeconomic implications. Theoretical and Applied Economics, 4(645), Winter,183-208.
l, S., Bakri, N. S. M., Ibrahim, W. M. F. W., Nasrul, F., Noh, M. K. A., Isa, M. A. M., & Hassan, S. S. (2022). The relationship between money supply, exchange rates and oil prices with KLCI’s price. International Journal of Academic Research in Business and Social Sciences, 12(10), 1538-1550.
Mohammed, M. (2021). The differential effects of oil price shocks on exchange rate, inflation, and monetary policy rate in Ghana. Studies in Economics and Econometrics, 45(1), 23-41.
Ogbonnaya, K. S., Maduka, O. D., & Okafor, S. O. (2025). MONETARY POLICY AND PRICE STABILITY IN NIGERIA. NAU Eco Journals, 22(1), 125-146.
Saliu, M.O., Adedeji, A.S., Ogunleye, E.O. (2020), Crude oil price shocks, monetary policy and output growth in African oil producing countries. Journal of Applied Economic Sciences, 15(1), 219-228.











