the relationship between money supply and level of price in the Saudi economy,1990-2015;An empirical Study

Hashem Jabbar studentAhmed Gabr Salem Al-SalemJOURNAL OF ADMINISTRATION AND ECONOMICS
2019, Volume 8, Issue 32, Pages 303-331

Abstract

AbstractAbstract: The purpose of study examined the nature of the relationship between money supply and prices in the Saudi economy for the period (1990-2015) by using the methods of slow distribution and autoregression ,the result indicate that values of parameters money supply in the period (t ,t- s) a negative , Disproportionate and weak during short run and long run .So the study suggests that expand price function through new variable beside money supply .also, guiding money supply policy toward price control during hyper inflation . while there will be guiding the exchange rate policy or interest rate policy toward price stable during low inflation.