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Taylor Rule in the Context of Inflation Targeting: The Case of Tunisia

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  • Kaouther Amiri
  • Besma Talbi

Abstract

The aim of this paper is to determine the optimal Taylor-type rule and the appropriate variables for the Tunisian economy in its conduct of the economic policy. Our starting point is the traditional Taylor rule. The results of the estimation of the reaction function in its static version confirm the hypothesis that Tunisia has been leading an efficient policy to control its inflation. Based on Akaike and Schwarz criteria, the results indicate that the static model better represents the reaction function of the Reserve Bank of Tunisia.

Suggested Citation

  • Kaouther Amiri & Besma Talbi, 2014. "Taylor Rule in the Context of Inflation Targeting: The Case of Tunisia," Journal of Empirical Studies, Conscientia Beam, vol. 1(1), pages 30-37.
    • Handle: RePEc:pkp:joestu:v:1:y:2014:i:1:p:30-37:id:2467
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    File URL: https://archive.conscientiabeam.com/index.php/66/article/view/2467/3787
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    Cited by:

    1. Nair Sultana & Rabiunnesa Koli & Mahamuda Firoj, 2019. "Causal Relationship of Money Supply and Inflation: A Study of Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 42-51, January.

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