Inflation, inflation uncertainty and output in Tunisia

Ahmed Hachicha and Hooi Hooi Lean ()

No 2013-1, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This study investigates the relationship between inflation, inflation uncertainty and output in Tunisia using real and nominal data. GARCH-in-mean model with lagged variance equation is employed for the analysis. The result shows that inflation uncertainty has a positive and significant effect on the level of inflation only in the real term. Moreover, inflation uncertainty Granger-causes inflation and economic growth respectively. These results have important implications for the monetary policy in Tunisia.

Keywords: GARCH-M model; inflation; inflation uncertainty; output (search for similar items in EconPapers)
JEL-codes: C22 E31 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-ara, nep-cba, nep-fdg, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:20131

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