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293299

Egypt's Inflation determinants An Empirical Study

Article

Last updated: 24 Dec 2024

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Tags

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Abstract

The study analyzes the impact of a number of macroeconomics factors, which represent both sides of supply and demand, on Egypt's inflation rate during a specific time frame (1990-2022). This study examined whether the exchange rate, lending interest rates, monetary supply, and investment effect Egypt's Inflation symmetrically or asymmetrically. Semi-annual data was analyzed using Nonlinear Autoregressive Distributed Lag (NARDL) econometric method. The study's findings, Egypt's local currency devaluation negatively affects long-term and short-term inflation. Results also show that negative shocks to lending interest rates are insignificant in long and short - run. Findings also show illiterate that positive shocks to lending rates have negative long-term impacts on inflation and positive short-term one. Money's negative effect on inflation suggests that Egypt's long-term and short-term inflation is caused by other variables. The research also showed that positive shocks to gross fixed capital formation lower long-term inflation. Short run negative shocks were insignificant, Inflation decreases as Egypt's gross fixed capital formation rises. Long-term inflation rates would drop with increased government spending, the data showed. The results indicated that government spending increases would result in a long-term decline in inflation rates.

DOI

10.21608/jsst.2023.198503.1577

Keywords

Inflation, Monetary supply, government spending

Authors

First Name

أحمد الرفاعي محمد

Last Name

امام

MiddleName

-

Affiliation

المعهد الكندي العالي للادارة بالسادس من اكتوبر

Email

ahmedelrefaai@gmail.com

City

الجيزة

Orcid

-

Volume

24

Article Issue

1

Related Issue

38432

Issue Date

2023-01-01

Receive Date

2023-03-07

Publish Date

2023-01-01

Page Start

270

Page End

295

Print ISSN

2090-5327

Online ISSN

2682-3543

Link

https://jsst.journals.ekb.eg/article_293299.html

Detail API

https://jsst.journals.ekb.eg/service?article_code=293299

Order

9

Type

المقالة الأصلية

Type Code

1,048

Publication Type

Journal

Publication Title

مجلة البحوث المالية والتجارية

Publication Link

https://jsst.journals.ekb.eg/

MainTitle

Egypt's Inflation determinants An Empirical Study

Details

Type

Article

Created At

24 Dec 2024