{
  "title": "Inflation Inertia in Egypt and its Policy Implications",
  "publication": "IMF Working Papers, July 1, 2011",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025",
  "overlayPath": "/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025/index.md",
  "summary": "This paper investigates the degree of inflation inertia in Egypt and its determinants using the cross country data consisting of over 100 countries.",
  "sections": [
    {
      "heading": "Summary and central findings",
      "content": "- This paper investigates the degree of inflation inertia in Egypt and its determinants using the cross country data consisting of over 100 countries.\n- 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.\n- 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."
    },
    {
      "heading": "Determinants and interpretation",
      "content": "- Inflation inertia measured via a medium-unbiased estimator places Egypt near the upper quartile of the sample of over 100 countries.\n- Cross-country evidence highlights two policy-related determinants:\n  - Counter-cyclical macroeconomic policy.\n  - Fiscal consolidation.\n- These determinants are identified as key to reducing:\n  - Inflation inertia.\n  - The costs of disinflation."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Adopt counter-cyclical macroeconomic policies to lower inflation inertia.\n- Pursue fiscal consolidation to reduce the persistence of inflation and the costs associated with disinflation efforts."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Disinflation, Inflation, Inflation targeting, Monetary policy, Monetary policy frameworks, Output gap, Prices, Production\n- Keywords: Disinflation, emerging market, Global, Inflation, inflation expectation, inflation inertia, inflation persistency, Inflation targeting, inflation targeting monetary policy framework, monetary policy, Monetary policy frameworks, Output gap, output gap persistency, shock volatility, WP\n\n---\n\n Content in this bundle\n\n- wp11160\n  - wp11160 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp11160 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025/bundle-manifest.json)",
    "Authors: Kenji Moriyama",
    "Published: July 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455297733.001",
    "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.",
    "Inflation inertia measured via a medium-unbiased estimator places Egypt near the upper quartile of the sample of over 100 countries.",
    "Cross-country evidence highlights two policy-related determinants:",
    "These determinants are identified as key to reducing:",
    "Adopt counter-cyclical macroeconomic policies to lower inflation inertia.",
    "Pursue fiscal consolidation to reduce the persistence of inflation and the costs associated with disinflation efforts.",
    "Subject: Disinflation, Inflation, Inflation targeting, Monetary policy, Monetary policy frameworks, Output gap, Prices, Production",
    "Keywords: Disinflation, emerging market, Global, Inflation, inflation expectation, inflation inertia, inflation persistency, Inflation targeting, inflation targeting monetary policy framework, monetary policy, Monetary policy frameworks, Output gap, output gap persistency, shock volatility, WP",
    "**_wp11160**"
  ],
  "related": [
    {
      "title": "_wp11160",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11160.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11160.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11160.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025/index.md",
    "json": "/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/31/inflation-inertia-in-egypt-and-its-policy-implications-25025/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T16:23:08.143Z"
}