An Assessment of the Real Exchange Rate Misalignments in Egypt: An Application of the Behavioral Equilibrium Approach

An Assessment of the Real Exchange Rate Misalignments in Egypt: An Application of the Behavioral Equilibrium Approach

Rana Hosni

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Cairo University

An Assessment of the Real Exchange Rate Misalignments in Egypt: An Application of the Behavioral Equilibrium Approach

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Abstract

This paper estimates the equilibrium real effective exchange rate for the Egyptian economy during the period . The paper reviews the evolution of Egypt’s exchange rate policy and the most significant developments of its real effective exchange rate during the same period. Using a behavioral equilibrium exchange rate (BEER) approach, it calculates the extent of real effective exchange rate misalignments in Egypt. There is evidence that the actual real effective exchange rate has deviated from the equilibrium real effective rate with various degrees during the estimation period. The Egyptian pound was overvalued before the launch of the ERSAP. The latter marked an undervaluation period that lasted till 1998. The findings indicate that the pound approached to its equilibrium level thereafter.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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How to Cite This Article

Rana Hosni. 2015. \u201cAn Assessment of the Real Exchange Rate Misalignments in Egypt: An Application of the Behavioral Equilibrium Approach\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 15 (GJHSS Volume 15 Issue E2): .

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GJHSS Volume 15 Issue E2
Pg. 37- 51

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

Keywords

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Classification

GJHSS-E Classification: FOR Code: C32, F31, F41, O55

Submission ReceivedFebruary 4, 2015
Peer Review Double Blind
Handling Editor
Accepted March 5, 2015
Published March 15, 2015

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v1.2

Issue date

April 7, 2015

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Article Matrices

Total Score: 101

Country: Egypt

Subject: Global Journal of Human-Social Science - E: Economics

Authors: Rana Hosni (PhD/Dr. count: 0)

View Count (all-time): 209

Total Views (Real + Logic): 4377

Total Downloads (simulated): 2173

Publish Date: 2015 04, Tue

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Total Views: 4377

Total Downloads: 2173

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