Broad Money Demand and Monetary Policy in Tunisia

Author/Editor:

Volker Treichel

Publication Date:

March 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The development of empirical foundations to the conduct of monetary policy in Tunisia is the central concern of this paper. Finding stable money demand functions, it broadly corroborates the choice of monetary aggregates as intermediate targets of monetary policy by the Tunisian Central Bank. It finds, however, a lower income elasticity than the one currently applied by the Central Bank and proposes a different methodology for defining monetary growth targets. The paper also finds that both interest rates and reserve money are feasible operating targets and suggests that the Central Bank orients its monetary policy more towards transparent operating targets.

Series:

Working Paper No. 97/22

Subject:

English

Publication Date:

March 1, 1997

ISBN/ISSN:

9781451921250/1018-5941

Stock No:

WPIEA0221997

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

27

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