فاعلية سياسة معدل الفائدة في الاقتصاد المصريخلال الفترة (1980-2019)‎

الملخص EN

The study aims to test the extent of the ability and effectiveness of interest rate policy and its use as a transmission mechanism for monetary policy to transfer changes from the monetary economy to the real economy.

Multiple regression models were estimated using the least squares method to know the effect of the interest rate on some macroeconomic variables such as real investment spending, real GDP, and the real demand for money in the Egyptian economy during the period (1980-2019).

The results of the study concluded that the interest rate as a transmission mechanism is of weak effectiveness in the Egyptian economy, so the effect of the interest rate on the real demand for money is statistically insignificant, and the real private investment spending is not flexible to the interest rate, and the effect of the interest rate on the real GDP is very weak.Thus, the interest rate is a disrupted transmission mechanism in the Egyptian economy, and therefore the use of interest rate policy to influence the monetary policy intermediate targets (especially the monetary aggregates M1, M2, and M3) will be weak, which leads generally to the weak effectiveness of monetary policy in the real economy.

Hence, there is great importance for activating the interest rate mechanism in the economy.