Inflation dynamics in Egypt: Structural determinants versus transitory Shocks

The external debt‐inflation nexus in Egypt

“…Hosny's (2013) study pinpoints to money supply and global commodity prices as the two main long run factors influencing inflation, while the short run factors comprise the exchange rate depreciation, supply‐side bottlenecks in addition to previous inflation. Sharaf (2015) assesses the link between inflation and inflation uncertainty; while Abdelraouf et al (2021) evaluate the structural determinants of inflation in Egypt versus transitory shocks. Finally, Ragab (2021) emphasizes the asymmetric and de‐anchored impact of exchange rate fluctuations on inflation, advocating intervention in the foreign exchange market to reduce exchange rate fluctuations and restrain inflationary pressures.…”

Remittances and Inflation in Egypt: An Econometric Study Using an ARDL Model

“…Alternatively, Abdelraouf et al (2019) adopted an ARDL model of monthly data during January 2000-October 2018 to investigate the inflation dynamics in Egypt while focusing on the effect of relative price variability resulting from nominal price rigidities, less market competition, and administered prices. The results indicated that inflation was largely driven in the long run by money supply related to financing the budget deficit followed by relative price variability, whereas the exchange rate pass-through effect and supply-side shocks were transitory rather than being structural determinants of inflation.…”