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Political Violence and Excess Liquidity in Egypt

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  • David Fielding
  • Anja Shortland

Abstract

In this article we estimate a time-series model of excess liquidity in the Egyptian banking sector. While financial liberalisation and financial stability are found to have reduced excess liquidity, these effects have been offset by an increase in the number of violent political incidents arising from conflict between radical Islamic groups and the Egyptian state. The link between political events and financial outcomes provides a rationale for economic policy interventions by the international community in response to increases in political instability.

Suggested Citation

  • David Fielding & Anja Shortland, 2005. "Political Violence and Excess Liquidity in Egypt," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 542-557.
    • Handle: RePEc:taf:jdevst:v:41:y:2005:i:4:p:542-557
    DOI: 10.1080/00220380500092580
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    References listed on IDEAS

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