In the past decade, financial inclusion has become an issue of increasing importance to developing nations. This is due to its perceived effects on poverty alleviation, sustainable growth and enhancing monetary policy effectiveness. Unfortunately, there is little empirical research on the effects of financial inclusion. The thesis hopes to contribute to the literature by inspecting the relationship between financial utilization indices and monetary policy in Egypt. The thesis utilizes quarterly data on outstanding deposits and loans from 2004 to 2020 as well as a VAR model – supplemented with an ARDL model – to test the aforementioned relationship. The thesis contributes to the literature by inspecting which of the following sectors – households or SMEs – are more conducive to monetary policy efficiency in order to develop more tailored policy recommendation. The findings imply a significant and negative relationship between total deposits by both households and SMEs to inflation. Some specifications imply the existence of a significant positive relationship between loans authorized to SMEs and inflation, implying an instance of over indebtedness in the sector that can impact the overall financial stability


School of Business


Economics Department

Degree Name

MA in Economics

Graduation Date

Fall 2-17-2022

Submission Date


First Advisor

Dr. Sarfaraz Ali Shah Syed

Committee Member 1

Dr. Mohammed Bouaddi

Committee Member 2

Dr. Tarek Selim


106 p.

Document Type

Master's Thesis

Institutional Review Board (IRB) Approval

Not necessary for this item