## The Monetary Transmission Mechanism in Egypt

_IMF Working Papers, December 1, 2007_

## Source details

**Canonical URL:** [The Monetary Transmission Mechanism in Egypt](https://www.imf.org/en/publications/wp/issues/2016/12/31/the-monetary-transmission-mechanism-in-egypt-21505)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/the-monetary-transmission-mechanism-in-egypt-21505/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/the-monetary-transmission-mechanism-in-egypt-21505/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/the-monetary-transmission-mechanism-in-egypt-21505/bundle-manifest.json)

## 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).*

---

## Content in this bundle

- **_wp07285**
  - [_wp07285 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2007/_wp07285.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp07285 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2007/_wp07285.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-monetary-transmission-mechanism-in-egypt-21505_