The exchange rate, wages, and domestic prices in Egypt

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Periodical article

Title:	The exchange rate, wages, and domestic prices in Egypt
Author:	Din, M.A. Ghars el-
Year:	1989
Periodical:	L'Égypte contemporaine
Volume:	80
Issue:	415-416
Pages:	16-35
Language:	English
Geographic term:	Egypt
Subjects:	wages prices terms of trade
Abstract:	This paper considers the overall effects of changes in import prices arising from the 1978 devaluation on the domestic price level in Egypt, using a simple two-equation model of the wage-price two-way relationship. The results suggest that the rise in import prices has had a greater impact on domestic prices over the period following devaluation (1979-1983) than over the whole period of study (1975-1983). The immediate implication of these results is that the argument for devaluation as an effective instrument to cure the deficit in the balance of payments is at stake as far as the Egyptian economy is concerned. App., bibliogr., notes, ref.