Economic growth in Libya leads to lower inflation rates, study finds.
The study looked at how money supply, inflation, and economic growth are connected in Libya from 1960 to 2016. They found that all these factors are linked in the long term. When economic growth goes up by 1%, inflation goes down by 1.55%. But if money supply increases by 1%, prices go up by 1.15%. In the short term, economic growth affects money supply, but not the other way around. Inflation always has a negative impact on economic growth, and the same goes for money supply. Economic growth has a positive effect on money supply, happening early on.