أثر الدين العام المحلي على النقود عالية القوة في مصر (1990-2019)‎

الملخص EN

The study aims to examine the effect of the domestic public debt on determining the level of high-powered money in the balance sheet of the Central Bank in Egypt, by testing the hypothesis that the domestic public debt has an effect on high- powered money, using, unit root tests, cointegration test and Vector Error Correction Models VECM.

The results of the study indicate a positive relationship between high-powered money and its determinants, namely, government domestic debt, gross domestic product and inflation, as the causal relationship test indicate the existence of a one-way causal relationship from the domestic government debt to the high-powered money in the short term, meanwhile in the long term there is a one-way causal relationship from the high-powered money to the domestic government debt.

There is a one-way causal relationship from GDP to high-powered money in the short and long term, and there is a one-way causal relationship from real high-powered money to inflation only in the short term..

Based on the results of the study, the determining the level of high-powered money and determining the value of the instruments that achieve it is not only based on achieving the objectives of monetary policy (GDP and inflation), but also there are other non-monetary factors determine high-powered money, which is the domestic government debt.