A classic argument in favor of a fixed exchange rate regime (ERR) has been the promotion of international trade between the pegging country and its base country. Results from previous literature point to a significant and highly positive effect of adopting a fixed ERR on bilateral trade between...

The objective of this paper is to test whether monetary policy in Egypt has been backward or forward-looking over the 2002M1-2012M12 period. Using different specifications of a simple Taylor rule, we show that the Central Bank of Egypt (CBE) has become more forward-looking, especially after it...

The relationship between financial development and economic growth has been widely examined in both the theoretical and empirical literature. This paper studies the relationship between these two variables in Egypt during the period 1961 to 2009, using co-integration and vector error correction...