The Political Economy of Monetary Policy in Resource-Rich Arab Economies

Ghassan Dibeh ()
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Ghassan Dibeh: Lebanese American University

No 896, Working Papers from Economic Research Forum

Abstract: This paper investigates the role of political institutions and interests in shaping monetary policy in the resource-rich Arab economies. The paper first reviews the literature on the political economy of monetary policy, central banking and exchange rates. The paper then studies these determinants in Arab economies differentiating between populous (or labor abundant) economies and non-populous (or labor scarce) economies. Political-economic determinants of monetary policy such as sectoral groups’ interest/preferences, rentier state, governance and the need to attractinternational capital inflows are considered.

Pages: 23
Date: 2014-12, Revised 2014-12
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Published by The Economic Research Forum (ERF)

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