Analysis of causality relationship between public expenditure and inflation in Libyan economy (1990-2000)

Abstract

Despite the differences between economic regimes, there is a wide acceptance about the effectual role of inflation in the economic path, and that effect has more importance in the development countries including Libya. The research adopted a Road map explaining the relationship between public expenditure and inflation in Libyan economy during (1990-2009).For the settlement of this Road map, the researcher tried many descriptive and quantitative approaches to clarify this relationship. The final finding which has been reflected via the causality measurement: The main effect arouse from the public government toward inflation pressures in Libya (1990-2009).