The Impact of Political and Economic Stability on Supporting Monetary Stability in Libya during the Period (1990–2024)

Authors

  • Khadeejah Miftah Masoud Salih Department of Economics, Faculty of Economics and Political Science - Surman, University of Sabratha, Libya
  • Widad Mustafa Ahmed Alfarrouj Department of Economics, Faculty of Economics, University of Zawiya, Libya
  • Nahed Ahmed Mohammed Shaheedah PhD Researcher, Faculty of Economics, University of Zawiya, Libya
  • Noura Alkhairi Othman Alghangha Department of Economics, Faculty of Economics, University of Zawiya, Libya

DOI:

https://doi.org/10.65417/ljcas.v4i1.282

Keywords:

Monetary stability, Exchange rate, Political stability, Economic stability, ARDL

Abstract

This study aims to analyze the impact of political and economic stability on monetary stability in Libya during the period (1990–2024), using the exchange rate as the main indicator for measuring monetary stability. The study relied on descriptive and analytical methods and quantitative methods using ARDL and ECM models. The results show a long-term equilibrium relationship between the exchange rate and inflation, GDP, political stability, and foreign reserves, with inflation emerging as the most influential factor in the long term. The short-term results also show that political stability and inflation have a significant impact on exchange rate fluctuations, with an effective correction mechanism that returns the monetary system to its equilibrium path. The study concludes that achieving monetary stability in Libya requires integrated policies that promote political stability and support economic stability, particularly through controlling inflation.

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Published

2026-02-02

Issue

Volume 4, No. 1, 2026

Section

Branch of Humanities and Social Sciences

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Khadeejah Miftah Masoud Salih, Widad Mustafa Ahmed Alfarrouj, Nahed Ahmed Mohammed Shaheedah, & Noura Alkhairi Othman Alghangha. (2026). The Impact of Political and Economic Stability on Supporting Monetary Stability in Libya during the Period (1990–2024). Libyan Journal of Contemporary Academic Studies, 4(1), 83-97. https://doi.org/10.65417/ljcas.v4i1.282