Requirements for Using Interest Rates As An Operating Target for Monetary Policy: The Case of Tunisia

ByAlain Durré, Bernard J Laurens, Alexandre Chailloux

July 1, 2009

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

This paper discusses the use of interest rates as the operating target for monetary policy in Tunisia and the roadmap for establishing the other building blocks of an inflation targeting framework. It argues that strengthening the effectiveness of the current monetary policy framework will facilitate the adoption of inflation targeting over time.

Subject: Banking, Exchange rates, Financial markets, Foreign exchange, Inflation, Monetary base, Monetary policy, Monetary policy instruments, Money, Money markets, Prices

Keywords: Exchange rates, Global, gradual adjustment, Inflation, interest rate, IT framework, Middle East, Monetary base, monetary frameworks, monetary management, monetary operations, monetary policy, monetary policy decision, monetary policy implementation, Monetary policy instruments, monetary policy interest rate, monetary policy transmission mechanisms, money market interest rate, Money markets, nominal exchange rate, reaction function, WP

Pages:
45
Volume:
2009
DOI:
https://doi.org/10.5089/9781451872965.001
Issue:
149
Series:
Working Paper No. 2009/149
Stock No:
WPIEA2009149
ISBN:
9781451872965
ISSN:
1018-5941

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