The Impact of the Official Exchange Rate Change on the Inflation Rate in the Libyan Economy During the Period (1990-2016)

Abstract

This study aims to measure the poverty line in rural areas of the Libyan economy The aim of the research is to study the effect of the exchange rate on inflation rates in the Libyan economy during the period (1990-2016) and to find out the extent of the effect of the exchange rate on inflation rates in the Libyan economy and the relationship between them. The research was based on the hypothesis that the exchange rate has an impact on inflation rates during the period (1990). -2016), and to achieve the research goal and test the hypothesis, the descriptive analytical method was followed in analyzing the relationship between the exchange rate and inflation, and the applied quantitative method using the standard method to measure the effect of the exchange rate on inflation: The research reached a set of results, the most important of which is that there is an inverse relationship between the exchange rate and inflation rates, and that the exchange rate has an impact on inflation rates in the Libyan economy, but this impact was weak, which indicates that there is a group of other factors besides the exchange rate that have an impact. On inflation rates in the Libyan economy.