The scope for inflation targeting in Tunisia: Analytical and empirical approach

The aim of our work is to identify the necessary conditions for successful transition to the regime of inflation targeting in the case of Tunisia. In this context, we analyze, first, the theoretical foundations of the policy of inflation targeting. Then, we outline the prerequisites for adopting this strategy in a country like Tunisia. Finally, based on SVAR models, we try to evaluate the transmission channels of monetary policy and identify the conditions for successful adoption of the regime of inflation targeting.