The Relation Between Excess Domestic Liquidity and Balance Of Payments Disequilibrium : Evidence From EgypT - Egyptian Knowledge Bank

130127

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

Article

Last updated: 25 Dec 2024

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Abstract

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.

DOI

10.21608/caf.2014.130127

Authors

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First Name

Ahmed fathy

Last Name

Alkhadrawy

MiddleName

Affiliation

Faculty of Commerce - Damietta University

Email

City

Orcid

Volume

Article Issue

Related Issue

19017

Issue Date

2014-06-01

Receive Date

2014-01-15

Publish Date

2014-06-01

Page Start

Page End

Print ISSN

1110-4716

Online ISSN

2682-4825

Article File

CAF_Volume 34_Issue 2_Pages 1-14.pdf

PDF . 1.1MB

Link

https://caf.journals.ekb.eg/article_130127.html

Detail API

https://caf.journals.ekb.eg/service?article_code=130127

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Publication Type

Journal

Publication Title

التجارة والتمويل

Publication Link

https://caf.journals.ekb.eg/

MainTitle