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Inflation Inertia in Egypt and its Policy Implications

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  • Kenji Moriyama

Abstract

This paper investigates the degree of inflation inertia in Egypt and its determinants using the cross country data consisting of over 100 countries. Medium-unbiased estimator of inflation inertia in Egypt is high compared to other countries, as indicated by its location around the upper quartile among the sample. The cross country analysis indicates that counter-cyclical macroeconomic policy and fiscal consolidation are a key to reduce inflation inertia and the costs of disinflation.

Suggested Citation

  • Kenji Moriyama, 2011. "Inflation Inertia in Egypt and its Policy Implications," IMF Working Papers 11/160, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:11/160
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    References listed on IDEAS

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    1. Arminio Fraga & Ilan Goldfajn & André Minella, 2004. "Inflation Targeting in Emerging Market Economies," NBER Chapters,in: NBER Macroeconomics Annual 2003, Volume 18, pages 365-416 National Bureau of Economic Research, Inc.
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    Cited by:

    1. Carrasco, Bruno & Mukhopadhyay, Hiranya, 2014. "Reserve Bank of India’s Policy Dilemmas: Reconciling Policy Goals in Times of Turbulence," ADB Economics Working Paper Series 393, Asian Development Bank.
    2. Touny, Mahmoud, 2013. "Investigate the Long-Run Trade-Off between Inflation and Unemployment in Egypt," MPRA Paper 54561, University Library of Munich, Germany.

    More about this item

    Keywords

    Business cycles; Central banks and their policies; Cross country analysis; Monetary policy; Fiscal consolidation; Egypt; Inflation; central bank; inflation targeting; monetary policy framework;

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