The discussion in this roundtable addressed the implications of currency wars for the Egyptian economy, mainly a widening current account deficit and the resulting consequences of inflationary pressures, asset bubbles and high sterilization costs. Policy options to mitigate these threats, including the need to resort to protectionist trade measures and capital controls, were discussed.
How should the central bank respond to the persistent and potentially long lasting relative price shock? Does such shock pose a challenge for the current monetary policy framework? How do multiple shocks complicate the conduct of monetary policy? Given the complexity of the economy, are the conventional instruments already in place enough? These are the […]
This roundtable discussion reviewed the key findings of the World Trade Report 2010 “Trade in Natural Resources”. Specifically, it discussed the appropriate mix of trade and domestic policies such as export taxes and/or quotas; import restrictions; consumption taxes and subsidies that Egypt could employ to ensure a sustainable level of resource extraction that balances the […]
While the impact on the region of the Dubai crisis and the unfolding events in Greece has been limited so far, a re-pricing of sovereign debt cannot be ruled out, adding an element of uncertainty to the outlook. Dealing with the legacy of the global economic crisis will be the priority in 2010. In some […]
Indeed, it can be argued that with the global financial crisis, developed country governments got a taste of what developing countries live with as a normal part of the development process. Crises can arise from many sources—differing in geographical or sectoral origins. Their onset is difficult to predict and, when they do hit, the rate […]
