The Monetary Transmission Mechanism in Egypt

Rania Al-Mashat () and Andreas Billmeier ()
Additional contact information
Rania Al-Mashat: Central Bank of Egypt

No 411, Working Papers from Economic Research Forum

Abstract: This paper examines the monetary transmission mechanism in Egypt against the background of the Central Bank’s intention to shift to inflation targeting. It first describes the changing transmission channels over the last decade. Second, the channels are evaluated in a VAR model. The exchange rate channel plays a strong role in propagating monetary shocks to output and prices. Most other channels (bank lending, asset price) are rather weak. The interest rate channel is underdeveloped but appears to be getting stronger since the introduction of the interest corridor in 2005, which bodes well for adopting inflation targeting over the medium term.

Pages: 43
Date: 2008-01-06, Revised 2008-01-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2016/04/411.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://erf.org.eg/wp-content/uploads/2016/04/411.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2016/04/411.pdf)
http://bit.ly/2nwB8AB

Related works:
Journal Article: The Monetary Transmission Mechanism in Egypt (2008)
Working Paper: The Monetary Transmission Mechanism in Egypt (2007)
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:411

Access Statistics for this paper

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