Taylor Rule and Monetary Policy in Tunisia

Imen Mohamed Sghaier ()
Additional contact information
Imen Mohamed Sghaier: University of Sfax, Faculty of Economics and Management of Sfax

Romanian Economic Journal, 2012, vol. 15, issue 45, 143-166

Abstract: This paper estimates the forward-looking monetary policy reaction function of the Central Bank of Tunisia (CBT) using quarterly data from 1993:Q2 to 2011:Q4. Policies which the CBT applied are analyzed according to the Taylor rule. The empirical results indicate that the CBT followed the Taylor rule in its interest setting behaviour. In forward-looking models, the response coefficient of expected inflation is greater than the output gap, which is consistent with the fact that inflation is the primary objective of monetary policy. The results of forwardlooking models reflect the policies conducted in Tunisia.

Keywords: Taylor rule; Monetary policy; Reaction function; GMM. (search for similar items in EconPapers)
JEL-codes: E43 E52 E58 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.rejournal.eu/sites/rejournal.versatech. ... -30/1995/sghaier.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:15:y:2012:i:46:p:143-166

Access Statistics for this article

Romanian Economic Journal is currently edited by Ioan Popa, PhD

More articles in Romanian Economic Journal from Department of International Business and Economics from the Academy of Economic Studies Bucharest Contact information at EDIRC.
Bibliographic data for series maintained by Radu Lupu ().