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Inflation, inflation uncertainty and output in Tunisia

  • Hachicha, Ahmed
  • Lean Hooi Hooi

This study investigates the relationship between inflation, inflation uncertainty and output in Tunisia using real and nominal data. GARCH-in-mean model with lagged variance equation is employed for the analysis. The result shows that inflation uncertainty has a positive and significant effect on the level of inflation only in the real term. Moreover, inflation uncertainty Granger-causes inflation and economic growth respectively. These results have important implications for the monetary policy in Tunisia.

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Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2013-1.

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Date of creation: 2013
Date of revision:
Handle: RePEc:zbw:ifwedp:20131
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