Fractional reserve banking and price stability: Evidence from Gulf Cooperation Council (GCC) countries

Musse, Osman Sayid Hassan and Echchabi, Abdelghani and Abd Aziz, Hassanuddeen (2015) Fractional reserve banking and price stability: Evidence from Gulf Cooperation Council (GCC) countries. The American Journal of Economics and Business Administration, 7 (3). pp. 101-105. ISSN 1945-5488 E-ISSN 1945-5496

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Abstract

This study aims at investigating 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 Gulf Cooperation Council (GCC) countries. The study uses yearly data spanning from 2008 through 2013 for Qatar, Kuwait, Oman, Saudi Arabia and United Arab Emirates and applies panel regression analysis based on the pooled data set. The results indicate that neither outstanding deposits nor outstanding loans have a significant influence on general price levels.

Item Type:	Article (Journal)
Additional Information:	270/49435
Uncontrolled Keywords:	Debt Creation, Fractional Reserve, Inflation, GCC
Subjects:	H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Professor Hassanuddeen Abd Aziz
Date Deposited:	04 Jan 2018 11:17
Last Modified:	04 Jan 2018 11:17
URI:	http://irep.iium.edu.my/id/eprint/49435

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