Economics, Econometrics and Finance
2 years ago

Money supply surge in Egypt predicted to drive up inflation rates.

Economics and Business
Impact of Money Supply on Inflation Rate in Egypt: A VECM Approach
Dekkiche Djamal

Paper Summary

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The article examines how the amount of money circulating in Egypt affects the country's inflation rate. Researchers used a VECM regression model to analyze data from 1990 to 2019, focusing on money supply, imports, GDP, and exchange rate. They found that all factors, except GDP, had a positive impact on inflation. The study revealed that money supply is the main long-term predictor of inflation in Egypt.