This research will analyze the Egyptian external debt, and its effect on the budget deficit and how the external debt could be rolled. We will see the government's policies, and how it affected the economy. The Gulf War had its effect in rescheduling and canceling some debt. Alternatives of deficit financing to prevent borrowing will be discussed. Thomas Sargent and Neil Wallace have introduced a model by which the government can meet its debt problem. Sargent and Wallace gave a solution to the problem of debt financing by printing money. This method is called "money financing." We will apply this solution to the Egyptian economy to see if it can solve the problem, and at the end we will modify the model to include other variables not included in the model.


School of Business


Economics Department

Degree Name

MA in Economics

Date of Award


Online Submission Date


First Advisor

Wilfrid Csaplar Jr.

Committee Member 1

Adel Beshai

Committee Member 2

Andrew Melnyk

Committee Member 3

Donald Sparks

Document Type



p. 72

Library of Congress Subject Heading 1

Debts, External

Library of Congress Subject Heading 2

Debts, Public


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Call Number




Included in

Economics Commons