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Economic Freedom and The Business Cycle: The Egyptian Experience

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  • Ossama Mikhail

Abstract

Most studies that emphasize and encourage the shift towards a less regulated and financially open system rest on the premise of a prosperous growth prospect. Accordingly, interests have focused on growth models as a framework to understand and to analyze the effects of economic freedom. In this paper, we investigate the short-run characteristics of economic freedom. Using a stochastic general equilibrium framework, we argue that economic reforms tend to ease periods of recessions, increase welfare, and alleviate the burden of unemployment. Calibrated to the Egyptian economy, we simulate our model and investigate the [robust] relationship between economic reforms and the business cycle.

Suggested Citation

  • Ossama Mikhail, 2004. "Economic Freedom and The Business Cycle: The Egyptian Experience," Macroeconomics 0402002, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpma:0402002
    Note: Type of Document - pdf; prepared on Win98; pages: 37; figures: 8
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic Freedom; Washington Consensus; Business Cycle; Egypt.;

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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