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On the Linkage Between Monetary Policy and MENA Stock Markets


  • Samy Bennaceur
  • Adel Boughrara
  • Samir Ghazouani

    () (Laboratoire d’Economie et Finance Appliquées (LEFA))


Using a sample of eight MENA region countries this study tries to understand whether there is an interaction between asset markets and monetary policy. The nature of the relationship between asset price movements and monetary policy is currently a hotly debated topic in macroeconomics. Relatively little empirical evidence is available that estimates the relationship between asset price movements and monetary policy measures. From a comparative perspective, promising results reflect a significant effect of an appropriate monetary policy on stock market development especially in Bahrain, Egypt, Morocco, Saudi Arabia and Tunisia using a VAR methodology. On the other hand, the responsiveness of stock markets differs across these MENA countries. In some countries stock market return depicts an upward tendency while in other countries it declines or do react at all.

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  • Samy Bennaceur & Adel Boughrara & Samir Ghazouani, 2007. "On the Linkage Between Monetary Policy and MENA Stock Markets," Working Papers 723, Economic Research Forum, revised 04 Jan 2007.
  • Handle: RePEc:erg:wpaper:723

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    References listed on IDEAS

    1. Marcus Noland & Howard Pack, 2007. "Arab Economies in a Changing World, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3931, October.
    2. Mani, Sunil, 2000. "Exports of High Technology Products from Developing Countries: Is it Real or a Statistical Artifact?," UNU-INTECH Discussion Paper Series 2000-01, United Nations University - INTECH.
    3. Dr. Walid Abdmoulah and Dr. Belkacem Laabas, "undated". "Assessment of Arab Export Competitiveness in International Markets using Trade Indicators," API-Working Paper Series 1010, Arab Planning Institute - Kuwait, Information Center.
    4. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    5. World Bank, 2010. "Tunisia - Development Policy Review : Towards Innovation-driven Growth," World Bank Other Operational Studies 2955, The World Bank.
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    Cited by:

    1. Izak Atiyas, 2011. "Firm-Level Data In The Mena Region: Research Questions, Data Requirements And Possibilities," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 159-190.

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