Paper Title
CAUSALITY RELATIONSHIP BETWEEN QUANTITY OF MONEY AND GROSS DOMESTIC PRODUCT IN PALESTINE AN ECONOMETRIC STUDY (1996-2016)

Abstract
Abstract - The study aimed to study the causal relationship between Quantity of money (M2) and Gross Domestic Product GDP in the Palestinian Territory (West Bank and Gaza Strip) and compare some of the economic indicators and Quantity of money (M2) in Palestine with other countries (classification by income) For 1996 -2016. The nature of the research and its specificity necessitated relying on the descriptive approach to study and analyze the nature of the relationship between the variables in order to show the relationship between the M2 and the Palestinian GDP by using annual data. The study was based on the of the ssps program. The results of the study showed a positive causal relationship between the M2 and GDP, which proves the validity of the study hypothesis. The results of this study supported the results of the previous studies. The results of the study were consistent with the economic theory. monetary stability is difficult to achieve in Palestine because there is no local currency. When comparing Palestine with other countries according to the income index, Palestine has very low rates of saving and total consumption and bank credit to the private sector. The study recommended working on the process of issuing money in order to allow the economy to recover and to maintain a balance between the supply and demand of money to eliminate the problems of monetary dependency. The Monetary Authority should seek to spread the banking culture in order to increase the efficiency of the M2 by means of its effect on the output GDP, both domestic saving and credit to the private sector must be increased and reduced both (gross consumption and trade deficit. Keywords - GDP, quantity of money (M2), money supply, monetary policy