Inflation Inertia in Egypt and its Policy Implications
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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. 2011/160
Subject:
Disinflation Inflation Inflation targeting Monetary policy Monetary policy frameworks Output gap Prices Production
English
Publication Date:
July 1, 2011
ISBN/ISSN:
9781455297733/1018-5941
Stock No:
WPIEA2011160
Pages:
26
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