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The Monetary Transmission Mechanism in Egypt, Rania Al-Mashat, Andreas Billmeier

This paper examines the monetary transmission mechanism in Egypt against the background of the central bank's intention to shift to inflation targeting. It first describes the changing transmission channels over the last decade. Second, the channels are evaluated in a VAR model. The exchange rate channel plays a strong role in propagating monetary shocks to output and prices. Most other channels (bank lending, asset price) are rather weak. The interest rate channel is underdeveloped but appears to be strengthening since the introduction of the interest corridor in 2005, which bodes well for adopting inflation targeting over the medium term
Table Of Contents
Contents; I. Introduction; II. Background and Literature; III. Monetary Transmission Channels in Egypt: A Descriptive Analysis; A. General Background; B. The Interest Rate Channel; Boxes; 1. A New Monetary Policy Framework: Steps Toward Inflation Targeting; Figures; 1. Interest Rate Developments, 1996-2007; C. The Exchange Rate Channel; Phase I: January 1997 to December 2000; Phase II: January 2001 to December 2002; 2. Price and Exchange Rate Movements, 1997-2007; Phase III: January 2003 to December 2004; Phase IV: Since January 2005; D. The Asset Price Channel; E. Bank Lending Channel
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (45 p.)
Specific Material Designation
Form Of Item

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