IS THE MONEY SUPPLY OF COUNTRY CATERED BY DOMESTIC FACTORS

The key objectives of this pragmatic investigation are the significant relationship between the broad money and macroeconomic factors import and export. utilized time series annual data set from 1995 to 2019, to find the significant relation. Augmented Dickey fuller test were applied for the stationary of variables. Regression model is used to observe the variables significance with M2. Heteroskedasity and serial correlation valuation technique were employed to examine the accuracy and as well as the normality of the variables. The outcomes of this empirical analysis expressed that coefficient of import is significant positive at 1% level, the export coefficient value are negative significant at level 1%. It is clearly mentioned that significant negative and positive relation are exist with M2. This analysis appreciates the exporters, importer and fiscal and monetary policy makers.