The effect of banks' debt creation on price stability: evidence from Middle East and North Africa

Sayid Hassan Musse; Hassanuddeen Abdul Aziz;, Osman and Abdul Aziz, Hassanuddeen and Echchabi, Abdelghani (2014) The effect of banks' debt creation on price stability: evidence from Middle East and North Africa. Middle East Journal of Management, 1 (3). pp. 224-231. ISSN 2050-3636

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Abstract

The purpose of the study is to examine the possible influence of the current money creation process applied by the commercial banks through the fractional reserve system on the overall prices stability in the MENA countries. The study uses yearly data spanning from 2005 through 2011 for 15 MENA countries, and applies panel regression analysis based on the pooled data set. The results indicate that neither outstanding deposits nor outstanding loans do have a significant influence on inflation.

Item Type:	Article (Journal)
Additional Information:	270/30286
Uncontrolled Keywords:	inflation; bank deposits; bank loans; MENA; fractional reserve banking; debt creation; price stability; Middle East; North Africa; commercial banks.
Subjects:	H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HJ Public Finance > HJ8003 Public credit. Debts. Loans. Claims
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Nur' Aini Abu Bakar
Date Deposited:	10 Apr 2015 12:01
Last Modified:	10 Apr 2015 12:03
URI:	http://irep.iium.edu.my/id/eprint/30286

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