August 22, 2014

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  • Op-ed: Egypt’s economic siren

    The inflation resulting from the devaluation of the Egyptian currency implies an increase in prices of commodities.

    BY MOHAMED A. EL-ERIAN Newport Beach Facing a turbulent political situation and recurrent street protests, Egypt’s political elite would be well advised to focus on the economic implications of the current turmoil, whether they are in government or in opposition. Doing so would lead them to recognize seven compelling reasons why a more collaborative approach to solving Egypt’s problems is in the country’s collective interest, as well as in their own individual interests. First, if the social and political disorder persists, Egypt’s economy will end up with crippling inflation, severe balance-of-payments problems, and a budgetary crisis. The risk of a…

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