Estimating a Small Open-Economy Model for Egypt: Spillovers, Inflation Dynamics, and Implications for Monetary Policy

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Price:  $18.00

Author/Editor: Elif C Arbatli, Kenji Moriyama
Release Date: © May, 2011
ISBN : 978-1-45526-137-6
Stock #: WPIEA2011108
English
Stock Status: On back-order

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Description

This paper estimates a small open economy model for Egypt to analyze inflation, output dynamics and monetary policy during 2005-2010. The interest rate channel is found to be relatively weak in Egypt, complicating the use of interest rates as the immediate target of monetary policy. However, the paper also finds a significant level of persistence in the policy rate, making monetary policy pro-cyclical. More active use of interest rate policy, measures to improve domestic debt markets and a gradual move towards inflation targeting can help support a successful disinflation strategy for Egypt.

Taxonomy

Economic policy , Inflation , Interest rate policy , Monetary policy




More publications in this series: Working Papers


More publications by: Elif C Arbatli ; Kenji Moriyama