المستخلص: |
This paper investigates the effectiveness of monetary policy in Egypt. We estimate a VAR) model, using monthly data for the period 2013: 12 to investigate how the change in monetary variables impacted GDP , inflation rate and BOP. Our empirical results indicate that (i) there exists a limited effect of monetary policy shocks on output over the sample period, and (ii) the change in monetary supply is not associated with the change of price index in egypt during this period. Furthermore, we attempt to evaluate the causes of the impact of monetary policy on output and the price index from the perspective of a transition economy. We hold that the method by which monetary policy is implemented during the transition period strongly influences the effectiveness of policy. It can be proved that administrative measures have been necessary, and may in fact be more effective than monetary policy instruments in egypt. In addition, it is necessary to pay special attention to maintaining an appropriate and adequate increase in money supply in order to advance the sustained, rapid and sound development of the national economy.
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