{"id":22954,"date":"2010-06-15T08:17:00","date_gmt":"2010-06-15T08:17:00","guid":{"rendered":"https:\/\/eces.org.eg\/?p=22954"},"modified":"2024-07-07T12:27:12","modified_gmt":"2024-07-07T12:27:12","slug":"monetary-policy-response-to-exchange-rate-movements-the-case-of-egypt","status":"publish","type":"post","link":"https:\/\/eces.org.eg\/en\/monetary-policy-response-to-exchange-rate-movements-the-case-of-egypt\/","title":{"rendered":"Monetary Policy Response to Exchange Rate Movements: The Case of Egypt"},"content":{"rendered":"\n<p><strong>Abstract:<\/strong><\/p>\n\n\n\n<p>The primary objective of this paper is twofold. First, it examines the design and conduct of monetary policy in Egypt. Second, it verifies whether \u201cfear of floating\u201d induces the Central Bank of Egypt to regularly resort to policy amendments as a means of smoothing exchange rate fluctuations. Consequently, the study provides an assessment of the credibility of the CBE commitment to floating the pound and evaluates the extent to which exchange rate movements are taken into consideration when formulating monetary policy. Both issues are addressed in the context of a dynamic stochastic general equilibrium (DSGE) model that simulates the performance of monetary policy in Egypt within a SOE setting characterized by a flexible exchange rate, perfect capital mobility and an inflation targeting mechanism described by a generic Taylor-type interest reaction function.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Abstract: The primary objective of this paper is twofold. First, it examines the design and conduct of monetary policy in Egypt. Second, it verifies whether \u201cfear of floating\u201d induces the Central Bank of Egypt to regularly resort to policy amendments as a means of smoothing exchange rate fluctuations. Consequently, the study provides an assessment of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":34782,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[],"class_list":["post-22954","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-working-papers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Monetary Policy Response to Exchange Rate Movements: The Case of Egypt - ECES<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/eces.org.eg\/en\/monetary-policy-response-to-exchange-rate-movements-the-case-of-egypt\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Monetary Policy Response to Exchange Rate Movements: The Case of Egypt - ECES\" \/>\n<meta property=\"og:description\" content=\"Abstract: The primary objective of this paper is twofold. 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