Why Has the Central Bank of Egypt Been Unable to Achieve The Goal of Price Stability Under the Economic Reform Program?

Ibrahim L. Awad ()

Acta Oeconomica Pragensia, 2010, vol. 2010, issue 6, pages 27-48

Abstract: This paper assesses the performance of the monetary policy in Egypt during the periods following the introduction of the economic reform and structural adjustment program (ERSAP). It sets out to answer the question why the Central Bank of Egypt (CBE) has not been able to achieve the goal of price stability under the ERSAP? The study compares the economic performance from the 1990s with both its counterpart in Germany, during the same periods, and with the economic performance of the Egyptian economy during the periods before the 1990s, i.e., 1975-1990. The study concludes that the CBE could have brought the rate of infl ation down; nevertheless, the unemployment and real GDP growth rates have worsened and a price stability is still far away. The failure to achieve price stability is explained by two reasons, namely, a conflict between monetary policy objectives and a chronic budget deficit financed by issuing new money.

Keywords: Price Stability; Monetary Policy Objectives; Economic Reform in Egypt (search for similar items in EconPapers)
JEL-codes: E31 E40 E42 E50 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.vse.cz/polek/download.php?jnl=aop&pdf=320.pdf
http://www.vse.cz/aop/abstrakt.php?IDcl=320 (text/html)
free of charge, full text delayed 3 months

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:prg:jnlaop:v:2010:y:2010:i:6:id:320:p:27-48

Ordering information: This journal article can be ordered from
Redakce Acta Oeconomica Pragensia, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://www.vse.cz/aop/

Access Statistics for this article

Acta Oeconomica Pragensia is edited by Markéta Arltová

More articles in Acta Oeconomica Pragensia from University of Economics, Prague
Contact information at EDIRC.
Series data maintained by Vaclav Subrta ().