Abstract:

Money Supply and Foreign Exchange Rate (monetary policy), and Government Expenditure and GDP (fiscal policy) have always been a key factor to the economic growth of a nation. Monetary policy itself via government intervention aims to control the supply of money and exchange rate in the market and contributes to the welfare of a nation. Since there is a lack of researches done in the area of monetary and fiscal policies on the economic growth of Chad, this paper investigates the effects of government expenditure, GDP, money supply, and foreign exchange rate on the economic growth of Chad. Hence, analyzed using autoregressive distributed lag (ARDL) approach using secondary data on Chadian economy covering from 1966-2014 extracted from World Bank Index for this research investigation. The findings from the data revealed that foreign exchange rate and lag GDP have positive significant effects on Chadian economic growth while money supply and government expenditure have no influence on the economic growth. With this, recommendations on how to improve the economy of Chad were made.