IMF Working Papers

Inflation Inertia in Egypt and its Policy Implications

By Kenji Moriyama

July 1, 2011

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Kenji Moriyama. Inflation Inertia in Egypt and its Policy Implications, (USA: International Monetary Fund, 2011) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

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

Publication Details

  • Pages:

    26

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2011/160

  • Stock No:

    WPIEA2011160

  • ISBN:

    9781455297733

  • ISSN:

    1018-5941