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When the Art of Macroeconomic Management Confronts the Evolution of Business Cycles: Zooming into the Egyptian Case

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  • Nouran Hussein

    (The American University in Cairo & Cairo University)

  • Jasmin Fouad

    (The American University in Cairo & Cairo University)

Abstract

The growing importance of macroeconomic management over time dictates the need to understand what constitutes effective management of monetary and fiscal policies during business cycles. This study aims at scrutinizing this topic empirically using Egypt as a case study during the timeframe FY 1988/89 ? FY 2015/16. The business cycles have been dated during that period, and the correlation between some monetary and fiscal tools with industrial production has been tested. Deficit spending was found to be counterproductive in the near team up to the fourth quarter, while expansionary monetary policy is unfavorable for economic growth up to two subsequent quarters due to its consequential inflationary effect.

Suggested Citation

  • Nouran Hussein & Jasmin Fouad, 2020. "When the Art of Macroeconomic Management Confronts the Evolution of Business Cycles: Zooming into the Egyptian Case," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 8(1), pages 11-34, May.
    • Handle: RePEc:sek:jijobm:v:8:y:2020:i:1:p:11-34
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    References listed on IDEAS

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    More about this item

    Keywords

    Monetary Policy; Fiscal Policy; Business Cycle;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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