Broad Money Demand and Monetary Policy in Tunisia

March 1, 1997

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Format: Chicago

Volker Treichel. Broad Money Demand and Monetary Policy in Tunisia, (USA: International Monetary Fund, 1997) accessed September 19, 2024

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.

Subject: Banking, Demand for money, Financial institutions, Monetary aggregates, Monetary base, Money, National accounts, Personal income, Treasury bills and bonds

Keywords: Asia and Pacific, Demand for money, Inflation rate, Interest rate target, Maghreb, Monetary aggregate M2, Monetary aggregates, Monetary base, Money demand, Money demand function, Personal income, Targeted monetary aggregate, T-bill rate, Treasury bill, Treasury bills and bonds, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/022
Stock No:

WPIEA0221997
ISBN:

9781451921250
ISSN:

1018-5941

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