On Egypts macroeconomic management in light of the impossible trinity /
الإدارة الاقتصادية الكلية فى مصر فى ضوء ثالوث الاستحالة
Sara Bahaa Hamed Alnashar ; Supervised Gouda Abdelkhalek Elsayyed
- Cairo : Sara Bahaa Hamed Alnashar , 2019
- 166 P. : charts ; 25cm
Thesis (Ph.D.) - Cairo University - Faculty of Economics and Political Science - Department of Economics
This thesis investigates Egypts macroeconomic management during 19912018, as viewed through the lens of the 2Impossible Trinity3; a theory which stipulates that a country cannot simultaneously pursue the three policy objectives of 2exchange rate stability3, 2perfect capital mobility3 and 2monetary autonomy3. This thesis analytically and empirically assesses each element of the impossible trinity for the Egyptian case, and sheds light on the extent to which Egypts policy combinations contributed to the countrys recurrent macroeconomic imbalances. It is shown that Egypt has maintained an imperfect degree of de facto international financial integration during the period under study. Nevertheless, capital mobility in Egypt has been sufficiently large and volatile, which in the context of a stabilized exchange rate has undermined (weakened) monetary autonomy. The analysis in this thesis shows how the Central Bank of Egypt (CBE) has been deploying various instruments to manage liquidity during the episodes of large capital flows, using Treasury bills and bonds in the 1990s, and through open market operations using deposit and repo auctions since the early-2000s. Indeed, the CBEs liquidity management has been mirroring the developments in the capital and financial account of Egypts Balance of Payments