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

Rana Hosni
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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.

Data Availability

Not applicable for this article.

How to Cite This Article

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

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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
Version of record

v1.2

Issue date
April 7, 2015

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

Rana Hosni
Rana Hosni Cairo University
  • Submission ReceivedFebruary 4, 2015
  • Peer Review Double Blind
    Handling Editor
  • Accepted March 5, 2015
  • Published March 15, 2015