EVALUATION OF THE PERFORMANCE OF MONETARY POLICY IN EGYPT AND ITS IMPACT ON THE RATE OF ECONOMIC GROWTH DURING THE PERIOD(2000-2004)

This study aims to assess the performance of monetary policy in Egypt from 2000 to 2004. This period was called the period of recession and economic crises because of its negative impact on the rate of economic growth, starting with a decline in growth rate in the late 1990s forcing the government and the monetary authority to take. The most important of these measures was the flotation of the Egyptian pound in 2003, but it did not achieve the desired goal, but there was another problem that exacerbated the problem further. The Egyptian pound fell significantly against the dollar and other currencies.
The study followed the analytical descriptive method to describe the developments reached by the Egyptian economy during the period of study and evaluate the performance of monetary policy and the analysis of indicators and results from the application of indirect tools during the period and their effectiveness in changing economic conditions. from the Central Agency for Public Mobilization and Statistics and from the annual reports of the Central Bank of Egypt.
The study reached some results, that despite the slight improvement resulting from the devaluation of the pound, but the Egyptian economy has been exposed to negative effects were the rise in prices and further stagnation and reduction of purchasing power and increased unemployment and the rate of economic growth more than before; all signs improved once the pound was devalued. Experience has shown that this slight improvement is temporary and its negative effects continue for a long time.
The study also reached some recommendations, of which is that in order for the monetary authorities to be able to provide the need for economic growth from cash balances without causing price rises, they must monitor the demand for money and direct the money supply in a manner that meets the needs of demand for or near cash balances, therefore, studies should be carried out to measure demand and money supply in order to predict possible behavior, in addition to the central bank's planning of the amount of money and credit commensurate with the real growth rate in GDP and the appropriate rate of increase in prices between the requirements of development and the requirements of prices.