Article : Possibility Of Adopting The Inflation Targeting Strategy In Tunisia

Title

Possibility Of Adopting The Inflation Targeting Strategy In Tunisia

Author

Rima Lajnaf

The failure of the theory of monetary aggregates in the eighties marked the birth of a new policy. This new strategy, also known by inflation targeting, was adopted for the first time by New Zealand in 1990 and later by many other countries. Several emerging countries followed this new policy due to its triumph experience. However, the application of this strategy requires checking some conditions. Therefore, we will study its applicability in Tunisia to examine if the Central Bank of Tunisia can follow inflation targeting rule. The analysis of the properties of this strategy show that Tunisia is not yet ready to follow it in short term.

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