Domestic public debt and inflation rates in the Libyan economy
Keywords:
domestic public debt, inflation, the Libyan economy, cointegrationAbstract
The main aim of this study was to investigate the nature of relationship between domestic public debt and inflation in the Libyan economy during the period 1973-2021. In order to achieve its objective, the study utilized linear correlation, cointegration tests, FMOLS method and Toda-Yamamoto TY long run causality test. FMOLS findings indicated a long run positive impact of domestic public debt on inflation in the Libyan economy. In addition, TY test results showed a causal relationship from domestic public debt to inflation in the long run.
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