Money demand and supply in Saudi Arabia : an empirical analysis
The main objectives of this study are: Firstly, to provide a clear picture of the Saudi money market in terms of its main characteristics, its financial institutions and the obstacles facing the market and its financial institutions. Secondly, to determine appropriate money demand functions for different money definitions in Saudi Arabia, using quarterly data which run from 1976:1 to 1986:4, and to test the stability and forcasting power of these functions. Thirdly, to determine theoretically and empirically the factors affecting the money supply in Saudi Arabia using annual data which run from 1967 to 1987. Finally, to determine empirically the factors affecting the Riyal market interest rate (domestic interest rate), using quarterly data which run from 1979:1 to 1988:2.