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Les règles de Taylor à l’épreuve de la révolution : cas de l’Égypte.

baaziz, yosra (2016): Les règles de Taylor à l’épreuve de la révolution : cas de l’Égypte.

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Abstract

This paper challenges the suitability of a nonlinear Taylor rule in characterizing the monetary policy behavior of Egyptian central bank), especially in turbulent times. More specifically, we investigate the possibility that the Taylor rule should be formulated as a threshold process and examine the validity of such nonlinear Taylor rule as a robust rule for conducting monetary policy in Egypt. Analytical results show that nonlinear Taylor rule holds and that adopting a nonlinear specification instead of the linear leads to a costs reduction in terms of fit: 90 basis point in 2008-Q4 and 20 basis point in post-revolution.

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