The Welfare Effects Of A Large Depreciation : The Case Of Egypt, 2000-05 / Aart Kraay.

Format:

Book

Author/Creator:

Kraay, Aart, author.

Series:

Policy research working papers ; 4182.

Policy research working papers ; 4182

Language:

English

Subjects (All):

Devaluation of currency.

Physical Description:

1 online resource (34 pages) : illustrations.

Other Title:

Working paper vol. no. 120

Welfare Effects Of A Large Depreciation

Place of Publication:

Washington, DC : World Bank, 2007.

Summary:

The Egyptian pound depreciated sharply between 2000 and 2005, declining by 26 percent in nominal trade-weighted terms. The author investigates the effect of the large depreciation on household welfare operating through exchange rate-induced changes in consumer prices. He estimates exchange rate pass-through regressions using disaggregated monthly consumer price indices to isolate the impact of the exchange rate changes on consumer prices. Then he uses household-level data from the 2000 and 2005 Egyptian household surveys to quantify the welfare effects of these consumer price changes at the household level. The average welfare loss due to exchange rate-induced price increases was equivalent to 7.4 percent of initial expenditure. Stronger estimated exchange rate pass-through for food items imply that this effect disproportionately affected poorer households.

Notes:

Description based on publisher supplied metadata and other sources.

Includes bibliographical references and index.

Publisher Number:

10.1596/1813-9450-4182