Title: The impact of money supply on economic growth: a case study of the United Arab Emirates

Authors: Mohammed Naim Chaker; Srinivas Inguva; Rubeena Cetin

Addresses: College of Business Administration, Ajman University of Science and Technology, P.O. Box 346, Ajman, United Arab Emirates. ' College of Business Administration, Ajman University of Science and Technology, P.O. Box 346, Ajman, United Arab Emirates. ' College of Business Administration, Ajman University of Science and Technology, P.O. Box 346, Ajman, United Arab Emirates

Abstract: The relationship between money supply and economic growth has been receiving more attention than any other subject in the field of monetary economics in recent years. The present paper investigates the impact of money supply on economic growth in the United Arab Emirates (UAE) between 2000 and 2010. The M1, M2 and M3 were independent variables and the GDP of the UAE and the inflation rates were the dependent variable. The set hypothesis for the study is that the money supply is not positively related to growth and inflation and it is, however, significant to GDP growth rates on the choice between contractionary and expansionary money supply.

Keywords: money supply; economic growth; GDP; gross domestic product; UAE; United Arab Emirates; inflation rate.

DOI: 10.1504/JGBA.2012.048121

Journal for Global Business Advancement, 2012 Vol.5 No.1, pp.7 - 20

Published online: 23 Jul 2012 *

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