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What Drives Prices in Egypt?An Analysis in Light of International Experience$
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Hanaa Kheir-El-Din

Print publication date: 2009

Print ISBN-13: 9789774163036

Published to Cairo Scholarship Online: September 2011

DOI: 10.5743/cairo/9789774163036.001.0001

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What Drives Prices in Egypt?

What Drives Prices in Egypt?

Hanaa Kheir-El-Din

American University in Cairo Press

Inflation implies both income and health. Aside from that, it impairs economic efficiency as well because it distorts price signals. By making it harder to distinguish between changes in relative prices and changes in the overall price level, inflation can also lead to a misallocation of resources. The quantity of money includes money in circulation. In addition, it also comprises the amount of deposits that is related to credit expansion. The Keynesian analysis later highlighted the main factors that determine the level of employment and inflation. It erodes real income of fixed nominal income earners, especially civil servants and pensioners.

Keywords:   inflation, income, prices, Keynesian analysis, money, employment

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