The Impact of Islamic Finance on Inflation Targeting in Egypt (Case Study Indonesia)

Abstract

This Study examines the Importance of applying Inflation Targeting regime in Egypt. As in 2005 when the central bank of Egypt announces its intention to adopt inflation targeting strategy once it meets all it’s prerequisites. At that time it was still Questionable whether Inflation Targeting strategy would be beneficial for Egypt or not, But nowadays IT strategy has proven its success in many countries & Egypt is in great need to adopt this strategy. Here in this thesis we study the importance of using Islamic financial tools in Egypt to control the budget deficit and to provide Egypt strong fiscal consolidation, preparing Egypt to meet all the preconditions to adopt .IT strategy.