Stability of Demand for Money in Sudan: 1962-2002

The basic objective of this thesis is to examine stability of demand for money in
Sudan and its determinants during 1960-2002. The research objective is
necessitated by the fact the stability of demand for money is important for ensuring
stable economic performance.
Moreover. the research is important because in Sudan studies on demand for money
lag behind 11.owaclays worldwide of studies using cointegration econometric
techniques.
Thus. the study 1s carried using' the cointegration technique for finding stable
demand li.>r 111011ey 111 Sudan to close the gap between Sudanese studies and
international studies.
The thesis has succeeded in finding a stable demand for money during 1962-1995.
less stability during 1995 -2002. Moreover. the thesis has arrived at the
determinants demand for money in the following order of importance: 1- National
income 2- Interest rate 3- Exchange rate 4- Inflation
The findings of thesis are consistent with economic theory and findings of
worldwide studies. The thesis is of value to academics and policy-makers .. To
academics. the thesis is of value by enriching acl\'ance research on demand for
money moreover opening the way for new research in the area and relevant areas
e.g. velocity in circulation. For policy makers. the thesis is of value in advising
about stable demand for money and thus facilitating determining optimum stock of
money.