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The Relation Between Excess Domestic Liquidity and Balance Of Payments Disequilibrium : Evidence From Egypt

المصدر: مجلة التجارة والتمويل
الناشر: جامعة طنطا - كلية التجارة
المؤلف الرئيسي: El Khadrawi, Ahmed Fathi (Author)
المجلد/العدد: ع2
محكمة: نعم
الدولة: مصر
التاريخ الميلادي: 2014
الصفحات: 1 - 14
ISSN: 1110-4716
رقم MD: 666573
نوع المحتوى: بحوث ومقالات
قواعد المعلومات: EcoLink
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17

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المستخلص: This paper tests the monetary approach to Egypt’s balance of payments during the period 1980 to 2012. It examines whether excess domestic supply played a role as a disturbance. The empirical results suggest that money played a significant role in determining the balance of payments. The one-to-one negative relationship and strong link between domestic credit and the flow of international reserves is established,. The results confirm that balance of payment in Egypt is a purely monetary phenomenon. The monetary authority in the country should seriously monitor budget deficit because this also cause domestic credit increase. The policy conclusion is that, given a stable demand for money function. balance of payments disequilibrium can be corrected through appropriate financial programming and monetary targeting.

ISSN: 1110-4716

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