Interest rate rule for the conduct of monetary policy: analysis for Egypt (1997:2007)

Rageh, Rania (2010): Interest rate rule for the conduct of monetary policy: analysis for Egypt (1997:2007).

Abstract

The main objective of the paper in hand is to examine the validity of using Taylor rule as a robust rule for conducting monetary policy in case of Egypt. In this context, the paper works through two main pillars. First: parts two and three; critically analyze the theoretical grounds for using an interest rate rule in conducting monetary policy. Second: part four; emphasize how the Taylor rule can be empirically estimated and evaluated. Consistently; this exercised while estimating and evaluating both simple backward and forward-looking Taylor rule for Egypt, guided by lessons from selected countries` experiences in estimating Taylor rule like U.S.A., U.K and Chile. JEL Classification Numbers: E52; E58

• Item Type: MPRA Paper
• Language: English
• Keywords: Keywords: central bank, monetary policy, Taylor rule.
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy

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