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Money demand is critical for defining monetary policy options and is not driven necessarily by developed country standards of transaction demand, speculation motive, and opportunity costs grounded by fully functioning financial markets. However, market imperfections in less developed economies can also play a critical role in the dynamics of demand for money. This paper estimates a vector equilibrium correction model to investigate the nature of short-term and long-term interactions for money demand in the Arab Republic of Egypt. The paper concludes that real money demand in Egypt during (1958-2013) is stable and can be considered confidently by monetary authorities to adjust for long-term growth in the real economy. The rate of devaluation of the official exchange rate and inflation have a serious effect on the public's trust in the national currency in the long term. Money is not neutral for long-term portfolio decisions, because of the increase in real income in the economy that couples with an uptrend in monetization as the ratio of money stock over output also uptrends. The paper also provides quantitative evidence that the devaluation within the parallel market is negatively related to the change in demand for real money balances in the short term. Economic agents hold more domestic currency if the official exchange rate slides, and arbitrage opportunities are sought in the parallel market.

Currencies and Exchange Rates --- Debt Markets --- Economic Reform Policies --- Economic Theory & Research --- Emerging Markets --- Finance and Financial Sector Development --- Fiscal & Monetary Policy --- Macroeconomics and Economic Growth --- Model Evaluation --- Money Demand --- Private Sector Development --- Selection --- Time-Series Models --- Validation

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Recent economic and political developments have highlighted a challenge shared across the Arab region of generating employment, promoting inclusive growth, and improving competitiveness. In the short run, weakened macroeconomic fundamentals in the developing economies of the Middle East and North Africa are a key challenge. The region's main challenge is to achieve sustainable growth that delivers the quantity and quality of jobs needed. An inclusive and competitive private sector has proven to be one of the most effective and long-term solutions for this challenge. This paper provides an analytical framework to diagnose and identify key challenges to the growth of small and medium enterprises that is supported by a quantitative model based on the World Bank's Enterprise Surveys database. The findings reconfirm that the route to a sustained role for small and medium enterprises in job creation requires improving the credibility of reforms, the effectiveness of policies, and equitable enforcement. Although one size fits all is infeasible for Arab countries, it is important to design policies across sectors to create productive employment and promote economic growth. Supporting innovation and enhancing access to finance are central to the development agenda for small and medium enterprises. And creating an enabling environment and setting up accountable institutions are key to ensure equal opportunity and inclusive growth.

Access to Finance --- Arab World --- Economic Growth --- Environmental Economics & Policies --- Finance and Financial Sector Development --- Gender Equality --- Investment Climate --- Job Creation --- Labor Markets --- Labor Policies --- Logistic Regression --- Private Sector Development

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This paper discusses the evolution of the Egyptian banking sector and the main trends in financial development in the Arab Republic of Egypt. The paper examines empirically the relationship between the development of the financial sector and economic growth in Egypt between 1980 and 2016. It draws comparisons based on critical financial indicators between Egypt and selected emerging markets and developing economies, using a new data set of financial development indexes released by the International Monetary Fund. Econometric time-series modeling of bivariate regressions for real growth per capita and measures of financial development, to assess the relationship between financial development and economic growth in Egypt, yields three specific findings. First; there is a strong association between real growth per capita and financial development measured. Second; access to and the efficiency of banking services are not associated with real per capita income. Third, the Financial Markets Access Index'which compiles data on market capitalization outside the top 10 largest companies and the number of corporate issuers of debt'indicates that there is a robust association with real per capita gross domestic product. The main policy implications suggest that there should be a stronger focus on promoting a more proactive role for the financial services industry in Egypt. There is an especially critical role for bank financing to support the private sector to maintain an inclusive growth momentum. Further development of the capital market will promote the sustainability of such economic growth.

Access to Finance --- Autoregression Distributed Lag Model --- Banking --- Capital Markets and Capital Flows --- Economic Growth --- Emerging Market Economies --- Finance and Development --- Finance and Financial Sector Development --- Financial Development --- Financial Economics --- Financial Markets Access Index --- Macroeconomics and Economic Growth --- Time Series Model

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This paper investigates the state of low investment in Afghanistan by studying how investment decisions interact with risks and uncertainty in the presence of underdeveloped financial markets. The analysis shows that investing firms experience a higher probability of being affected by events related to crime and corruption and spend more on security arrangements. Firms that participate in the formal financial sector are also subject to higher levels of risk and uncertainty. As more productive firms face higher risks and uncertainty, a model of resource allocation with heterogeneous firms is used to quantify the economic loss from crime and corruption. The estimated aggregate output loss of 12 percent is significantly higher than the 7 percent loss observed in the absence of the resource allocation channel.

Access to Finance --- Business Cycles and Stabilization Policies --- Common Carriers Industry --- Construction Industry --- Crime and Society --- Education --- Educational Sciences --- Finance and Financial Sector Development --- Financial Frictions --- Food and Beverage Industry --- General Manufacturing --- Industry --- Investment Decisions --- Macroeconomics and Economic Growth --- Plastics and Rubber Industry --- Pulp and Paper Industry --- Risks --- Social Development --- Textiles Apparel and Leather Industry --- Uncertainty

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This paper focuses on developments in the European Economic and Monetary Union sovereign debt markets in the past decade. The first part analyzes the integration and segmentation structure of the bond markets of the Economic and Monetary Union b

European Economic And Monetary Union --- Monetary Policy --- Network Analysis --- Sovereign Debt --- Tapering