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https://doi.org/10.17818/EMIP/2026/18

OPTIMAL MONETARY POLICY AND FINANCIAL STABILITY IN TUNISIA: DSGE MODEL WITH FINANCIAL FRICTIONS

Dorra Turki ; Sveučilište u Sfaxu, Tunis, Fakultet ekonomije i menadžmenta *
Haykel Hadj Salem ; Sveučilište u Sousseu, Tunis, IHEC Sousse, Sousse
Foued Badr Gabsi ; Sveučilište u Sfaxu, Tunis, Fakultet ekonomije i menadžmenta

* Dopisni autor.


Puni tekst: engleski pdf 640 Kb

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preuzimanja: 181

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Sažetak

This paper examines the relationship between monetary policy and financial stability through a “leaning against the wind” strategy in the context of an emerging economy. We estimate a Dynamic Stochastic General Equilibrium (DSGE) model with financial frictions tailored to Tunisia. A standard Taylor rule is compared with an augmented version that includes credit growth as a financial variable. The results show that when the Central Bank of Tunisia assigns a moderate weight (0.10) to financial stability, output volatility declines slightly. When the weight increases to 0.50, giving equal importance to financial stability and output stabilisation, the policy significantly reduces fluctuations in both credit and output, but at the cost of greater inflation variability. This trade-off highlights the limits of conventional monetary policy and indicates the need for complementary macroprudential tools to support both price and financial stability.

Ključne riječi

Monetary policy; Financial stability; DSGE model; Bayesian approach

Hrčak ID:

346347

URI

https://hrcak.srce.hr/346347

Datum izdavanja:

16.4.2026.

Podaci na drugim jezicima: hrvatski

Posjeta: 601 *