Macroeconomic effects of a currency devaluation in Egypt - An analysis with a computable general equilibrium model with financial markets and forward-looking expectations

M.J.P.M. Thissen*, B.W. Lensink

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

9 Citations (Scopus)


This paper presents a general equilibrium model for Egypt, which allows for different forms of expectations formation and takes financial markets into account. Moreover, it uses a new calibration method. The model is used to examine the macroeconomic effects of a currency devaluation. The results show that the impact of a currency devaluation on the current account is small in the medium run, whereas effects on production are substantial in the medium term. Finally, results differ considerably for forward-looking or adaptive expectations. (C) 2001 Society for Policy Modeling. Published by Elsevier Science Inc.

Original languageEnglish
Pages (from-to)411-419
Number of pages9
JournalJournal of Policy Modeling
Issue number4
Publication statusPublished - May-2001

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