The Monetary Transmission Mechanism in Egypt
IMF Working Papers, December 1, 2007
Source details
- Canonical URL
- The Monetary Transmission Mechanism in Egypt
Other formats
Bibliographic details
- Authors: Rania A. Al-Mashat, Andreas Billmeier
- Published: December 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451868487.001
Overview and objective
- Examines the monetary transmission mechanism in Egypt against the background of the central bank's intention to shift to inflation targeting.
- Analysis proceeds in two steps:
- Describes the changing transmission channels over the last decade.
- Evaluates the channels in a VAR model.
Key findings
- Exchange rate channel:
- Plays a strong role in propagating monetary shocks to output and prices.
- Bank lending and asset price channels:
- Most other channels (bank lending, asset price) are rather weak.
- Interest rate channel:
- Underdeveloped but appears to be strengthening since the introduction of the interest corridor in 2005.
- Strengthening of the interest rate channel bodes well for adopting inflation targeting over the medium term.
Methods and scope
- Empirical evaluation based on a VAR model.
- Timeframe: analysis references changing transmission channels over "the last decade" relative to the study.
- Publication details and identifiers:
- Pages: 43
- Volume: 2007
- Issue: 285
- Series: Working Paper No. 2007/285
- DOI: https://doi.org/10.5089/9781451868487.001
- Stock No: WPIEA2007285
- ISBN: 9781451868487
- ISSN: 1018-5941
- Authors and date:
- By Rania A. Al-Mashat, Andreas Billmeier
- December 1, 2007
Subjects and keywords
- Subject: Currency markets, Deposit rates, Exchange rates, Monetary aggregates, Monetary stance
- Keywords: interest rate channel, lending rate, monetary policy stance, private sector, U.S. dollar, WP
Source: IMF Working Paper "The Monetary Transmission Mechanism in Egypt", Working Paper No. 2007/285 (December 1, 2007).