Three Essays on the Inflation Targeting Regime

This book comprises of three empirical essays on adopting the inflation targeting regime in Egypt. It sets out to answer the following questions: (i) Can the central bank of Egypt(CBE)achieve the goal of price stability under the currently applied monetary targeting regime? (ii) Is the legal independence granted to the CBE under the latest legislation promulgated in 2005 factual? (iii) Does the CBE maintain an implicit target for the FX rate? Does the CBE follow an independent monetary policy? Which variables have priority in the reaction function of the CBE? How far can foreign economic shocks explain the behavior of real GDP and price level in the Egyptian economy compared with domestic economic shocks? And which monetary transmission mechanism channels play a dominant role in the Egyptian economy?