The Interaction of Fiscal and Monetary Policies in Egypt and their Response to External Shocks | ||
| التجارة والتمويل | ||
| Article 11, Volume 43, Issue 2, May 2023, Pages 147-194 PDF (1.74 M) | ||
| DOI: 10.21608/caf.2023.303700 | ||
| Author | ||
| Eman Selim | ||
| کليه التجاره جامعه طنطا | ||
| Abstract | ||
| The purpose of this paper is to empirically investigate the interaction between monetary and fiscal policies and their macroeconomic relative effects on real GDP growth and prices in Egypt. The paper focuses on how fiscal and monetary variables respond to external shocks. We employ Auto-Regressive Distributive Lag Bounds Model (ARDL Bounds test) for cointegration, the Error Correction Model (ECM) in the ARDL Framework and the Set Theory for the time from 1975 to 2022 to study the interaction and the extent of coordination among fiscal policy, monetary policy and economic activity based on annual data. The paper uses the conventional transmission channels of both the fiscal policy and the monetary policy (money supply, government revenue and expenditure, interest rate and exchange rate) that are assumed to function for Egypt. | ||
| Keywords | ||
| Monetary and Fiscal policies interaction; external shocks; economic growth; ARDL; VAR | ||
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