THE LONG-RUN RELATIONSHIP BETWEEN OUTPUT, MONEY, AND PRICES: EMPIRICAL EVIDENCE FROM SYRIA.
Journal Title: International Journal of Advanced Research (IJAR) - Year 2019, Vol 7, Issue 2
Abstract
The aim of this study is to examine the long-run relationship between nominal GDP, money supply and inflation rate in Syria over the period 1980-2012. Using annual data, the Johansen Co-integration analysis was applied in order to investigate the long-run relationship between the variables in question. The results revealed that there is a long-run equilibrium relationship between the three variables. More specifically, the GDP is positively related to money supply but negatively related to inflation over the long run. Similarly, inflation is positively related to money supply but negatively related to GDP. However, money supply is positively related to both GDP and inflation over the long run.
Authors and Affiliations
Burhan Ali, Zeina Al-Ahmad.
Keywords
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- EP ID EP484237
- DOI 10.21474/IJAR01/8517
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