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Inflation Forecast-Based Rule for Inflation Targeting: Case of Some Selected MENA Countries

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  • Houda Ben Hadj Boubaker

    (Institut Supérieur de Gestion de Tunis, Tunisia)

Abstract

Inflation targeting is an attractive monetary policy strategy because it could reduce inflation and improve central banks’ credibility, which is what motivated its adoption previously by industrial countries and recently by emerging ones. This paper considers to what extent some selected MENA countries can adopt inflation targeting. To this end we estimate a monetary policy derived from the flexible inflation forecast targeting based-rule. The aim of this paper is to estimate a reaction function that fits the inflation-targeting framework in accordance with the specificity of the transmission mechanism into these countries.

Suggested Citation

  • Houda Ben Hadj Boubaker, 2011. "Inflation Forecast-Based Rule for Inflation Targeting: Case of Some Selected MENA Countries," Working Papers 628, Economic Research Forum, revised 09 Jan 2011.
    • Handle: RePEc:erg:wpaper:628
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    Cited by:

    1. Abdelli Soulaima, 2014. "A Welfare Based Approach for choosing the Inflation Targeting and the Exchange Regime in Tunisia," Journal of Economics and Behavioral Studies, AMH International, vol. 6(12), pages 919-932.

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