The study looked at how monetary policy affects the Egyptian economy using SVAR models. They found that after a monetary policy expansion, output stays stable at first, then rises temporarily before returning to normal. The price level also rises in response to a negative interest rate shock. The effect of bank lending and interest rates on the economy is limited in the short term but more significant in the long term. Overall, the transmission of monetary policy through interest rates has weakened in the short run but is more important in the long run.