Abstract
This article investigates the stability of money demand and implications for the conduct of monetary policy in Egypt. The econometric procedures include testing for structural breaks at unknown dates and conditioning on the most recent break for estimation and forecasting. Test results provide evidence for regime shifts and lend support to the use of short-term interest rate as the main policy instrument. Sources of structural change are detected by a state-space model. Also, using a structural vector autoregressive (VAR) model for short-run dynamics, it is found that narrow money is a more appropriate monetary aggregate for policy analysis.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
