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

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

9 Citaten (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.

Originele taal-2English
Pagina's (van-tot)411-419
Aantal pagina's9
TijdschriftJournal of Policy Modeling
Nummer van het tijdschrift4
StatusPublished - mei-2001

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