Inflation Inertia in Egypt and its Policy Implications

Author/Editor: Kenji Moriyama
Publication Date: July 01, 2011
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: 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.
Series: Working Paper No. 11/160
Subject(s): Fiscal consolidation

Author's Keyword(s): Inflation | monetary policy
Publication Date: July 01, 2011
ISBN/ISSN: 9781455297733/1018-5941 Format: Paper
Stock No: WPIEA2011160 Pages: 26
US$18.00 (Academic Rate:
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