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The Monetary Transmission Mechanism in Egypt

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 ra...

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Bibliographic Details
Main Author: Al-Mashat, Rania
Other Authors: Billmeier, Andreas
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2007
Series:IMF Working Papers
Subjects:
Interest Rates
Finance
Monetary Stance
Currency; Foreign Exchange
Monetary Economics
Monetary Policy, Central Banking, And The Supply Of Money And Credit: General
Monetary Aggregates
Deposit Rates
Money Supply
International Financial Markets
Currency Markets
Foreign Exchange
Banks And Banking
Monetary Policy
Interest Rates: Determination, Term Structure, And Effects
Foreign Exchange Market
Exchange Rates
Money And Monetary Policy
Finance: General
Egypt, Arab Republic Of
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary: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 strengthening since the introduction of the interest corridor in 2005, which bodes well for adopting inflation targeting over the medium term
Physical Description:43 pages
ISBN:9781451868487

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