Detecting and separating money and its consequences using the ARDL method

kolsum Shahivandi¹ Vahid Farzam²

1) Master of Science in Rafsanjan Valiasr University
2) Assistant Professor of Rafsanjan Valiasr University

IOI Code : XDAA-EGZCG
Publication : 2 nd- Scientific Research Conference on Management, Economics and Accounting(cmeaconf.com)
Abstract :
    The nature and function of money is one of the most important economic issues that has devoted a great chapter to the history of economic thought; it is especially important to understand the nature and function of money in economics in the form of a monetary system and how to manage the system. Money has an important effect. The purpose of this study was to identify and differentiate money and its consequences by using the ARDL method over the period 1973-1953 using the Hudrick-Prescott (HP) filter (to investigate the output gap), the ARDL self-explanatory method (for ARDL). Is the long-run relationship between variables. The results indicate that domestic money has a positive and significant effect on the output gap, while external money has a negative and significant effect on the output gap and exchange rate fluctuations. Given the special role and importance of money in the economy, as well as the results of the research, monetary policy makers and economists are advised to increase liquidity by increasing external money (monetary base) and decreasing domestic money (modern currency). And direct the liquidity that is largely internal money into production and productive activities.

Keywords : external money inner money money creation money consequence