Egypt's Fiscal Policy Fails to Stabilize Economy During Recessions
Fiscal policy in Egypt has not been countercyclical as expected, meaning it hasn't been adjusting spending and revenues to stabilize the economy during ups and downs. This is different from developed countries. The study looked at data from 1981 to 2014 and found that financial and credit factors play a role, but institutional and political factors are more important in shaping Egypt's fiscal policy.