Economics, Econometrics and Finance
3 years ago

Tunisia shifts to inflation targeting for stable monetary policy post-Arab Spring.

SSRN Electronic Journal
Tunisia Monetary Policy Since the Arab Spring: The Fall of the Exchange Rate Anchor and Rise of Inflation Targeting
Nicolas End, Mariam El Hamiani Khatat, Rym Kolsi

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The monetary policy in Tunisia has shifted towards inflation targeting as a more effective approach. This change was necessary due to issues with monetary targeting and exchange rate anchoring. The Central Bank of Tunisia has been making progress in this direction, with interest rates playing a more important role in the economy. The exchange rate's impact on inflation has also been changing as Tunisia moves towards greater exchange rate flexibility.