Forecasting Savings in Egypt

Egypt followed a central command economic policy during the 1970's, implementing repressive financial policies and directing credit. The banking sector was fully state owned, enabling the government to set a ceiling for interest rates. The Egyptian government adopted an economic reform program in the 1990's. The main pillar of which is to support financial development and achieve economic growth. This followed a full liberalization of determination interest rates, leaving it for markets to determine the opportunity cost of money holdings. The purpose of this paper is to investigate whether the forecasting models for savings in Egypt break down after 1991