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The Interaction Between Monetary Policy And Macroprudential Tools: Empirical Evidence Of The Southern Mediterranean Countries

Author

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  • SAOUSSEN OUHIBI

    (University of sfax, Tunisia)

  • SAMI HAMMAMI

    (University of sfax, Tunisia)

Abstract

In this paper, we analyze the interactions between monetary policy and macroprudential tools in the southern Mediterranean over the period 2000-2017. This research examines the relationship between monetary policy and macroprudential tools using a structural vector Auto-regressive model (SVAR). Our empirical results show that macroprudential tools should be used only as a complement to monetary policy to achieve financial stability but cannot be a substitute to achieve price stability.

Suggested Citation

  • Saoussen Ouhibi & Sami Hammami, 2021. "The Interaction Between Monetary Policy And Macroprudential Tools: Empirical Evidence Of The Southern Mediterranean Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(2), pages 51-66, June.
    • Handle: RePEc:rfh:bbejor:v:10:y:2021:i:2:p:51-66
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    More about this item

    Keywords

    monetary policy; macro prudential tools; interaction; SVAR;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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