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Inflation Inertia in Egypt and its Policy Implications

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  • Mr. 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

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

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    Cited by:

    1. El Baz, Osama, 2014. "The Determinants of Inflation in Egypt: An Empirical Study (1991-2012)," MPRA Paper 56978, University Library of Munich, Germany.
    2. 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.
    3. Touny, Mahmoud, 2013. "Investigate the Long-Run Trade-Off between Inflation and Unemployment in Egypt," MPRA Paper 54561, University Library of Munich, Germany.
    4. Thibault Lemaire, 2020. "Phillips in A Revolution: Unemployment and Prices in Early 21st Century Egypt," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03948605, HAL.
    5. Harold Ngalawa & Coretha Komba, 2020. "Inflation‐Output Trade‐Off in South Africa: Is the Phillips Curve Symmetric?," South African Journal of Economics, Economic Society of South Africa, vol. 88(4), pages 472-494, December.
    6. Nyoni, Thabani, 2019. "ARIMA modeling and forecasting of inflation in Egypt (1960-2017)," MPRA Paper 92446, University Library of Munich, Germany.
    7. Novikova Natalia & Volkov Dmitry, 2012. "Modelling core inflation in Ukraine in 2003-2012," EERC Working Paper Series 12/12e, EERC Research Network, Russia and CIS.

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