Money Supply Dynamics and Macroeconomic Indicators in Yemen: Insights from a Time-Series Analysis

Abstract

Ramzi Abdullah Ahmed Hassan

A succession of historical events and continuing wars have significantly impacted Yemen's economy, resulting in structural imbalances and a weak monetary system. This research analyses some aspects to determine how these difficulties may affect Yemen's economic stability. The three goals are to evaluate the impact of financial assistance on Yemen's economic recovery, investigate the link between the expansion of the money supply and macroeconomic indicators, and investigate the effects of structural imbalances on living standards and poverty levels. Regression analysis, time-series analysis, and covariance analysis are used in the study to examine the data. The research shows that reducing inflation, financial assistance from Saudi Arabia, and international conventions have considerably helped Yemen's economy become more stable. The research emphasises the urgent requirement for well-coordinated measures to deal with Yemen's economic difficulties. Stakeholders can reduce risk by comprehending these complexities.

PDF