دالة الطلب على النقود وسعر الصرف في مصر (1975-2017)‎

الملخص EN

The central bank of Egypt (CBE) manages the monetary policy by adopting the inflation targeting starting in 2005, which assumes that the demand for money function is unstable.

Egypt has witnessed many fluctuations and shocks in the exchange rate regime, which affects the demand for money function.

the research attempts to estimate the demand for money in Egypt under the exchange rate shocks during the period 1975 -2016.

consequently, the demand for money in Egypt was estimated using the VAR model, the ganger causality, the impulse-response function, the variance decomposition, and VECM.

results assure that demand for money in Egypt is unstable in the long-term.

accordingly, the unstable demand for money in Egypt is returning to exchange rate shocks like those in 1979 and 2016 after fluctuating the Egyptian exchange rate.