Publication detail

The Monetary Targeting Regime in Egypt:Theoretical and Empirical Investigations

Author(s): Ibrahim Awad ,
Type: Articles in journals with impact factor
Year: 2010
Number: 0
ISSN / ISBN:
Published in: Economic Studies
Publishing place:
Keywords: monetary targeting regime; demand for money function; velocity of circulation of money
JEL codes:
Suggested Citation:
Abstract: The purpose of this paper is to answer the following question; can the central bank of Egypt achieve the goal of price stability under the currently applied monetary targeting regime? The answer depends on whether or not the demand for money function is stable in Egypt. Using quarterly data on the period 1995-2007, the study estimated the long run demand for money function in Egypt. By testing its stability for structural change, the demand for money function is found instable. Thus, the study concludes that the central bank of Egypt cannot achieve price stability under the currently applied monetary targeting regime.

Partners

ČSOB
Deloitte
McKinsey & Company

Sponsors

CRIF