<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

Publié en ligne: 11 nov. 2022

Pages: 134 - 148

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

Mots clés
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

Publié en ligne: 11 nov. 2022

Pages: 134 - 148

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

Mots clésExchange 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.

Mots clés
Exchange rate, GDP, inflation rate, importations, money supply, VEC