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Taylor Rule and Monetary Policy in Tunisia
2012
Journal:  
Romanian Economic Journal
Author:  
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 forward-looking models reflect the policies conducted in Tunisia.

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Romanian Economic Journal

Field :   Sosyal, Beşeri ve İdari Bilimler

Journal Type :   Uluslararası

Metrics
Article : 527
Cite : 336
2023 Impact : 0.029
Details
Romanian Economic Journal