The Relationship Between Dollarization and Inflation:

AL-Iraqi, Bashar A.; AL.Omari, Mohammed F.

doi:10.33899/tanra.2019.161170

	The Relationship Between Dollarization and Inflation: " Egypt at period 1994-2016 is A Model "
TANMIYAT AL-RAFIDAIN
Article 11, Volume 38, Issue 121, 2019, Pages 189-206 PDF (1.31 M)
Document Type: Research Paper
DOI: 10.33899/tanra.2019.161170
Authors
Bashar A. AL-Iraqi; Mohammed F. AL.Omari
Department Financial and Banking Sciences College of Administration and Economic University of Mosul
Abstract
The paper aims to make comprehensive view of theoretical frameworks that determent the relationship between dollarization phenomenon and inflation rate and fluctuation. It also aims at analyzing and explanting the mechanisms on the impact played by one toward the other . The paper, as well as, try to makes quantitave model for testing and determining the nature, value, and direction of the relationships between those two variables and the capability of the actual situation in Egypt during the period 1994-2016 for reflecting the theoretical situation. The Autoregressive Distributed Lag methodology (ARDL) was used by Pesaran et al. (2011) is adopted to achieve that. The results of the measurement show a statistically significant negative impact on the inflation rate (INF), a significant positive effect of fluctuations in inflation rates (GINF), and no significant effect on the difference between inflation and exchange rate fluctuations (GIEX) In the dollarization index Duration of study.
Keywords
Dollarization; Financial Dollarization; Inflation; Exchange rate; portfolio

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The Relationship Between Dollarization and Inflation: " Egypt at period 1994-2016 is A Model "