Theoretical and Applied Economics
No. 3 / 2024 (640), Autumn
Financial stability and monetary policy rules: evidence from Tunisia
University of Sfax, Tunisia
Rima LAJNAF
University of Sfax, Tunisia
Abstract. This paper aims to identify the role of monetary policy in ensuring not only price stability but also financial stability for the central bank of Tunisia. We employ the generalized method of moments on quarterly data during the period 2000-2020 for the Tunisian context to estimate various types of monetary policy rules. We compare the standard Taylor rule with the augmented version that incorporates non-performing loans as a financial variable. Our findings indicate a significant and positive impact of this variable on the monetary policy reaction function. Furthermore, our analysis highlights the ability of monetary policy to effectively balance the trade-off between its dual objectives of price and financial stability.
Contents
Evaluating the International Financial Reporting Standards (IFRS) adoption in developing countries: an institutional theory review
Analyzing the impact of oil price fluctuations on economic growth in Algeria: an empirical study
Impact of population cycle on income sharing pattern of a capitalistic society
Understanding users' behavioral intention to use artificial intelligence for personal financial management: an innovation diffusion theory approach
Financial stability and monetary policy rules: evidence from Tunisia
The transfer between the spending habits of different generations-a debate between retail and E-commerce
Planning for economic integration: addressing trade challenges posed by the Ukraine-Russia conflict in Europe
Dynamics of the interplay between economic complexity, governance and economic growth in the BRICS countries: a panel GMM approach
The relevance of theories of foreign direct investment to mergers and acquisitions in Africa
The impact of employment in industry on income inequality in Great Britain
Structural transformation, poverty, and inequality in emerging countries
How work works for the new generations?
Assessing the nexus between market openness and economic growth: an emerging market perspective
The relationship between access to electricity, CO2 emissions, and economic growth in BRICS
Social aspects of the informal economy: evidence from EU countries
Tracing the path: testing the environmental Kuznets Curve in Algeria using ARDL bounds testing
Dynamic interactions among selected world stock indices: a VAR approach
Boosting human capital: how the COVID-19 pandemic accelerated agile methodology adoption in software development
Do gold, oil and bitcoins possess safe heaven attributes in times of crisis? Empirical evidence using a wavelet-based time-frequency dependency approach from the pandemic to the Russia–Ukraine crisis
Financial contagion and the circular economy paradigm: opportunities and challenges for Romania
The circular economy in Romania: a bibliometric study of innovation and sustainable practices