Macroeconomic Policies – Living beyond One’s Means and The Struggle to Pay for It
November 2024 2024-12-11 15:57Authors
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Macroeconomic Policies – Living beyond One’s Means and The Struggle to Pay for It
Abstract
| This chapter will provide an overview of macroeconomic policies in Egypt with the dual objective of describing fiscal and monetary reforms that can improve Egypt’s macroeconomic management and of providing a unified framework for the remaining chapters of this part of the handbook which will then provide a detailed treatment of each of the various aspects of macrocosmic policy in Egypt. The chapter will start by describing the main features of Egyptian fiscal policy with a special focus on the behavior of the main fiscal aggregates, public debt management and a description of the main fiscal reforms and the evolution of Egypt’s budgetary institutions. Next, the chapter will move to monetary and exchange rate policy. It will describe how inflation and inflation expectations relate to the evolution of Egypt’s monetary policy framework and of the mandate of the Central Bank of Egypt (CBE). The discussion will be framed into a standard macroeconomic model aimed at emphasizing how changes in Egypt’s macroeconomic situation affect the choice of the macroeconomic framework. |
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