IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Interest rate policy in Egypt : its role in stabilization and adjustment

  • Dailami, Mansoor
  • Hinh T. Dinh

An appropriate interest rate policy is considered essential to the success of stabilization and adjustment programs that Egypt might undertake. The broad objectives of such a policy would include deregulating credit and investment, raising the interest rate, and developing a"core"short-term debt market to serve as a reference point for market determination of interest rates. And as the government moves away from a regulated environment of controlled credit and regulated investment toward a more liberal system, interest rates will be the prices that guide investment decisions and ensure allocative efficiency. The authors describe some of the structural problems Egypt's economy has faced in the past decade and policy initiatives that the government has undertaken, and review the economy's financial sector. They analyze the role that interest rate policy could play in Egypt's stabilization and adjustment program, particularly how it would affect the outcomes of the important objectives of attracting workers'remittances, encouraging domestic residents to hold deposits in local currency, and increasing investment efficiency. The authors recommend that changes in the level and structure of interest rates be planned in several steps and carried out in conjunction with other adjustment measures, such as reducing the budget deficit, reforming public enterprises, and streamlining public investment.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1991/04/01/000009265_3961001024055/Rendered/PDF/multi_page.pdf
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 655.

as
in new window

Length:
Date of creation: 30 Apr 1991
Date of revision:
Handle: RePEc:wbk:wbrwps:655
Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Ortiz, Guillermo, 1983. "Currency Substitution in Mexico: The Dollarization Problem," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(2), pages 174-85, May.
  2. Martin Feldstein & Lawrence Summers, 1983. "Inflation, Tax Rules, and the Long-term Interest Rate," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 153-185 National Bureau of Economic Research, Inc.
  3. Roe, Alan R., 1982. "High interest rates: a new conventional wisdom for development policy? some conclusions from Sri Lankan experience," World Development, Elsevier, vol. 10(3), pages 211-222, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:655. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.