EconPapers    
Economics at your fingertips  
 

Phillips in A Revolution: Unemployment and Prices in Early 21st Century Egypt

Thibault Lemaire ()

No 1453, Working Papers from Economic Research Forum

Abstract: The relative price Phillips curve hypothesis gives a better account of the dynamics of the Egyptian economy than the price Phillips curve. Using standard aggregate macroeconomic quarterly data for the Egyptian economy from 2003q1 to 2019q1 to obtain Ordinary Least Squares and Generalized Method of Moments estimates for four versions of the Phillips curve, this article provides evidence that the exchange rate regime affects the relation between prices and unemployment in emerging economies: while an economic boom leads to lower unemployment and higher inflation in a fixed exchange rate regime, the nominal appreciation of the currency negatively affects imported goods prices and flattens the price Phillips curve in a flexible exchange rate regime. The results also suggest a broken link between inflation and unemployment during the Egyptian Revolution and the subsequent period, raising questions on macroeconomic management in times of political turmoil.

Pages: 33
Date: 2020-12-20, Revised 2020-12-20
New Economics Papers: this item is included in nep-ara and nep-mac
References: Add references at CitEc
Citations: Track citations by RSS feed

Published by The Economic Research Forum (ERF)

Downloads: (external link)
https://erf.org.eg/publications/phillips-in-a-revo ... 1st-century-egypt-2/ (application/pdf)
https://bit.ly/37UHzqU (text/html)

Related works:
Working Paper: Phillips in A Revolution: Unemployment and Prices in Early 21st Century Egypt (2020) Downloads
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: https://EconPapers.repec.org/RePEc:erg:wpaper:1453

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Sherine Ghoneim ().

 
Page updated 2023-01-26
Handle: RePEc:erg:wpaper:1453