In this paper, the author studied the relationship between financial intermediation and the Current Account fluctuations in Egypt. The author was able to show that in Egypt, financial intermediation has both long and short run causal effects on the Current Account. On the other hand, the Current account has no long or short run causal effects on two of the financial intermediation variables (M2Y and Private) but had both long run and short run causal effect on the remaining financial intermediation variable (Privy). This latest finding comes as a surprise and will require additional research to explain it.
Ossama Elhadary. "Relationship between Financial Intermediation and the Current Account in Egypt." Proceedings of the New York State Economics Association. vol. 6, October 2013, p. 11-18
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