The Impact of Fiscal and Monetary Policies on Inflation Empirical Evidence from Egypt from 1990 to 2020 | ||
| Journal of Advances in Economics and Business Studies | ||
| Volume 1, Issue 1, October 2024, Pages 94-108 PDF (466.4 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/jaebs.2024.386345 | ||
| Authors | ||
| Lamees El Araby1; Yara ElSehaimy2; Zeinab Ali2; Farha Karim3; Farah Mohamed3; Mohanad Mahmoud3 | ||
| 1Head of international economics department at Egyptian Chinese University | ||
| 2International Economics Department, Faculty of Economics and International Trade, Egyptian Chinese University ECU, Cairo, Egypt | ||
| 3Faculty of Economics and International Trade, Egyptian Chinese University ECU, Cairo, Egypt | ||
| Abstract | ||
| This paper studies the impact of fiscal and monetary policies on inflation in Egypt. Using a sample period from 1990–2020, we investigated the relationship between both of them by using the ARDL Bounds test for the co-integration test, where the dependent variable is inflation and government expenditure, tax revenue, and money supply as independent variables, using the stationary test first and estimating the short- and long-run relation. The empirical study found that all variables have a positive and significant impact according to the co-integration bound test, and the ECM error correction model finds that there is long-run causality between variables. The study recommends that the best policy to get rid of inflation is discipline in monetary and fiscal policies. | ||
| Keywords | ||
| Egypt; Inflation; Fiscal Policy; Monetary Policy; Government Expenditure; Taxation; Money Supply | ||
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