EVOLUTION OF THE MONETARY BASE: AN APPLIED STUDY ON THE LIBYAN ECONOMY DURING THE PERIOD (2008-2023)

Abstract The study aimed to analyze the development of the monetary base in the Libyan economy during the period (2008-2023). To achieve this goal, the descriptive analytical approach was used, relying on the data provided by the Central Bank of Libya to analyze the relationship between net assets and the stability of the monetary base. The research concluded that there is a positive impact of net foreign assets and a negative impact of net domestic assets on the monetary base this is a result of the Central Bank practicing a policy of neutralizing foreign assets by reducing or increasing net domestic assets to achieve stability in the monetary base and the economy. The research recommended the necessity of controlling the monetary base and its elements in a way that does not affect the generation of inflationary or deflationary pressures in the economy, and that the growth of the monetary base be in a way that meets the needs of economic expansion and not for non-economic reasons.