In countries with underdeveloped financial markets, interest rate restrictions, depreciating currency and high rates of inflation, the store of value function of domestic money is disabled. Consequently, foreign money becomes the only alternative liquid form of financial wealth. Contradicting...

The demand for money is an important function of stabilization policies where such policies depend on the ability to manipulate the size of money supply in order to insulate real output from monetary disturbances. This paper investigates whether foreign money in Egypt should be included in...