The article examines how monetary and fiscal policies in Egypt affect economic stability. Researchers used a model to analyze data from 2004 to 2016 and found that the Central Bank of Egypt focuses on controlling inflation and stabilizing output. Fiscal policy plays a role in stabilizing government debt and output, with government spending being pro-cyclical and taxes counter-cyclical. The study shows that past fiscal decisions influence future policy-making. This integrated approach helps understand how monetary and fiscal policies impact inflation, output, and debt in Egypt.