<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In this work, the research team employed a VECM regression model to evaluate the relationship between money supply and inflation rate (INF) in Egypt from 1990 to 2019. The model includes four independent variables: money supply (MS), imports (IMP), Gross Domestic Product (GDP), and exchange rate (EXCH). A Johansen-Juselius co-integration test and a Vector Error Correction Model were used to determine the existence of long-term and short-term links between the variables. The results demonstrated the existence of co-integrating links between the variables. Aside from the effects of GDP, all independent factors had a positive effect on the inflation rate. Depending on the results, the money supply is the primary long-term predictor of the inflation rate in Egypt.</p>
</abstract>

In this work, the research team employed a VECM regression model to evaluate the relationship between money supply and inflation rate (INF) in Egypt from 1990 to 2019. The model includes four independent variables: money supply (MS), imports (IMP), Gross Domestic Product (GDP), and exchange rate (EXCH). A Johansen-Juselius co-integration test and a Vector Error Correction Model were used to determine the existence of long-term and short-term links between the variables. The results demonstrated the existence of co-integrating links between the variables. Aside from the effects of GDP, all independent factors had a positive effect on the inflation rate. Depending on the results, the money supply is the primary long-term predictor of the inflation rate in Egypt.

Impact of Money Supply on Inflation Rate in Egypt: A VECM Approach

Research Laboratory in Financial Market Management Using Automated Media and Mathematics (GMFAMI)

Economics and Business

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Impact of Money Supply on Inflation Rate in Egypt: A VECM Approach"}

In this work, the research team employed a VECM regression model to evaluate the relationship between money supply and inflation rate (INF) in Egypt from 1990...

Impact of Money Supply on Inflation Rate in Egypt: A VECM Approach

Online veröffentlicht: 11. Nov. 2022

Seitenbereich: 134 - 148

DOI: https://doi.org/10.2478/eb-2022-0009

Schlüsselwörter
Exchange rate, GDP, inflation rate, importations, money supply, VEC

© 2022 Djamal Dekkiche et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Impact of Money Supply on Inflation Rate in Egypt: A VECM Approach

Online veröffentlicht: 11. Nov. 2022

Seitenbereich: 134 - 148

DOI: https://doi.org/10.2478/eb-2022-0009

SchlüsselwörterExchange rate, GDP, inflation rate, importations, money supply, VEC

© 2022 Djamal Dekkiche et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Schlüsselwörter
Exchange rate, GDP, inflation rate, importations, money supply, VEC