Analysis of the relationship between changes in money supply and gross domestic product in the UAE

Abstract

The money supply is one of the two sides of the monetary balance, which constitutes the demand for money, and the other side, which is one of the basic monetary variables that have been focused on in the monetary theory. Economic stability, contributing to long-term monetary policy and determining the growth rate of the money supply in a way that is commensurate with the gross domestic product.The study aims to analyze and measure the effect of money supply on (gross domestic product) for the period (2003-2020), and the standard model was built according to annual data using the (Eviews12) program, which is a test to detect the stability of time series of variables using the extended Dickie Fuller test, and the Dickie Fuller test was also used The limits (BoundTest) of the cointegration test based on the autoregressive distributed time decelerators (ARDL) model to measure the short and long term relationship between variables The study concluded that there is a relationship between the money supply and the gross domestic product of the United Arab Emirates in the short term, which is a positive relationship