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Determinants of Inflation in Tunisia: Using Structural Modeling

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  • Ghrissi Mhamdi

    (Université de Sousse)

Abstract

The aim of this paper is to advance a structural modeling of the monetary politics in Tunisia and to provide elements that contribute to the understanding of the determinants of the inflation. This study is going to refer in relation to the theoretical foundations of the Phillips Curve, to construct the fundamental equation to use by structural macro econometrics models that considers the most direct determinants of the inflation. In section 2 of this paper, the structural models of inflation are exposed in the simplest variant used internationally by the central banks. In section 3, one is going to present the results of the evaluation of three econometrics models with data of the economy Tunisian based on the specification that the Curve of Phillips proposes. Finally, in section 4, the results are analyzed and the implications are valued in relation to the conduct of the monetary politics in Tunisia.

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  • Ghrissi Mhamdi, 2013. "Determinants of Inflation in Tunisia: Using Structural Modeling," Post-Print halshs-01136478, HAL.
    • Handle: RePEc:hal:journl:halshs-01136478
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01136478
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    References listed on IDEAS

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    1. Ghrissi Mhamdi, 2013. "Stability Of Money Demand Function In Tunisia," Post-Print halshs-01138431, HAL.
    2. Marvin Goodfriend & Robert G. King, 1997. "The New Neoclassical Synthesis and the Role of Monetary Policy," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 231-296, National Bureau of Economic Research, Inc.
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    4. Michael F. Bryan & Stephen G. Cecchetti, 1993. "The consumer price index as a measure of inflation," Economic Review, Federal Reserve Bank of Cleveland, vol. 29(Q IV), pages 15-24.
    5. Laurence Ball & N. Gregory Mankiw, 1995. "Relative-Price Changes as Aggregate Supply Shocks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 161-193.
    6. Robert Amano & Tiff Macklem, 1997. "Menu Costs, Relative Prices, and Inflation: Evidence for Canada," Staff Working Papers 97-14, Bank of Canada.
    7. Stock, James H. & Watson, Mark W., 1989. "Interpreting the evidence on money-income causality," Journal of Econometrics, Elsevier, vol. 40(1), pages 161-181, January.
    8. Chrigui, Zouhair & Boujelbene, Younes & Mhamdi, Ghrissi, 2011. "Central Bank independence and inflation: Evidence from emerging countries," Journal of Policy Modeling, Elsevier, vol. 33(3), pages 453-469, May.
    9. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
    10. mhamdi, ghrissi, 2009. "Evaluation du degré d’indépendance de la Banque Centrale de Tunisie [Independence degree of Tunisian central bank]," MPRA Paper 63671, University Library of Munich, Germany.
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    Cited by:

    1. Ghrissi Mhamdi & Mounir Smida & Ramzi Farhani, 2014. "Indicators of core inflation: Case of Tunisia," Post-Print halshs-01138432, HAL.

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    More about this item

    Keywords

    structural modeling; Tunisia; inflation;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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