This paper tests the monetary approach to Egypt’s balance of payments during the period 1980 to 2012. It examines whether excess domestic supply played a role as a disturbance. The empirical results suggest that money played a significant role in determining the balance of payments. The one-to-one negative relationship and strong link between domestic credit and the flow of international reserves is established,. The results confirm that balance of payment in Egypt is a purely monetary phenomenon. The monetary authority in the country should seriously monitor budget deficit because this also cause domestic credit increase. The policy conclusion is that, given a stable demand for money function. balance of payments disequilibrium can be corrected through appropriate financial programming and monetary targeting.
Alkhadrawy, Ahmed fathy. (2014). The Relation Between Excess Domestic Liquidity and Balance Of Payments Disequilibrium : Evidence From EgypT. التجارة والتمويل, 34(2), 1-14. doi: 10.21608/caf.2014.130127
MLA
Ahmed fathy Alkhadrawy. "The Relation Between Excess Domestic Liquidity and Balance Of Payments Disequilibrium : Evidence From EgypT", التجارة والتمويل, 34, 2, 2014, 1-14. doi: 10.21608/caf.2014.130127
HARVARD
Alkhadrawy, Ahmed fathy. (2014). 'The Relation Between Excess Domestic Liquidity and Balance Of Payments Disequilibrium : Evidence From EgypT', التجارة والتمويل, 34(2), pp. 1-14. doi: 10.21608/caf.2014.130127
VANCOUVER
Alkhadrawy, Ahmed fathy. The Relation Between Excess Domestic Liquidity and Balance Of Payments Disequilibrium : Evidence From EgypT. التجارة والتمويل, 2014; 34(2): 1-14. doi: 10.21608/caf.2014.130127
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