Estimating a Small Open-Economy Model for Egypt : Spillovers, Inflation Dynamics, and Implications for Monetary Policy »
Series: IMF Working Papers
Author(s): Elif Arbatli , and Kenji Moriyama
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2011
Keywords: Small open economy model, transmission mechanism, exchange rate, interest rate, real interest, real interest rate, output gap, General Aggregative Models: Forecasting and Simulation, Prices, Business Fluctuations
This paper estimates a small open economy model for Egypt to analyze inflation, output dynamics and monetary policy during 2005-2010. The interest rate channel is found to be relatively weak in Egypt, complicating...