INFLATION, MONEY, INTEREST-RATE, EXCHANGE-RATE, AND CAUSALITY - THE CASE OF EGYPT, MOROCCO, AND TUNISIA

This study provides further evidence of the inflationary effects of the rates of growth of money supply, gross domestic product, effective exchange rate, and imported inflation for Egypt, Morocco, and Tunisia using quarterly data from 1964 to 1990. In addition, it examines the Granger causality between inflation and money supply as well as between inflation and the real exchange rate in the countries under consideration. Most of the results are consistent with extant theory and empirical evidence.