Science Journal of Economics Volume 2013 (2013),
© Author(s) 2013. This work is distributed under the Creative Commons Attribution 3.0 License.
Inflation Targeting Policy: Pre-requisites and Opportunities for Tunisia
Author: Olfa Manai Daboussi, Ali Chebbi, Asma Madouri
Higher Institute of Management University of Tunis
Accepted 27 November 2013; Available Online 30 December 2013
The objective of this paper is to explore the feasibility and the efficiency of a strategy of inflation targeting in Tunisia. We check whether the necessary conditions for a successful implementation of inflation targeting are fulfilled or not and we outline the pre-requisites for adopting this strategy in Tunisia. By developing a structural VAR model, we try to evaluate the transmission channels of monetary policy and to identify the conditions for successful adoption of the regime of inflation targeting.
Keyword:Inflation target, monetary policy, SVAR model, Tunisia.