The Economic Research Forum (ERF), FEMISE association and the University of Tunis El Manar, Tunisia are organizing a workshop on “Monetary Policy and Inflation Targeting” that will take place in Tunisia on October 24-25, 2008. The purpose of this two-day workshop is to provide a platform for researchers and policy makers to exchange views on the merits of alternative monetary policy regimes with a particular focus on ‘Inflation Targeting’. The presentations will draw on research sponsored by ERF and FEMISE, the knowledge and experience of a number of international scholars and the insights of participating policymakers. Beside a broad coverage of the topic, the sessions will assess the extent to which countries like Egypt, Tunisia and Morocco are ready for inflation targeting, especially with respect to the state of financial sector soundness, central bank independence and fiscal dominance. The workshop will also explore monetary transmission mechanisms as well as the experience of countries like Turkey and Poland.

Plenary Sessions

Sessions 1-4 will introduce alternative monetary regimes and their expected benefits and shortcomings with a special focus on inflation targeting (IT)

Session 1 is the Opening and welcome session. The welcome note will be followed by the opening speech of the Governor of the Central Bank of Tunisia..

Session 2: Alternative Monetary Regimes: Developed Countries Experience This session will look at the evolution in developed countries from fixed exchange rates under Bretton Woods through monetary targeting to inflation targeting by independent central banks and will focus on formal versus informal/explicit versus implicit IT.

Session 3: Preconditions for IT: financial soundness This session will focus on the importance of financial sector soundness, stability and reforms and the transition to IT.

Session 4: Preconditions for IT: fiscal discipline and Central Bank Independence This session will tackle the issue of Central Bank independence and why it matters as well as fiscal discipline, public debt and the transition to IT.

Sessions 5-8 will focus on the region country cases and will provide opportunities for debate about the issue of the appropriate monetary regime for each country and for the region in general.

Session 5: Is IT an appropriate choice for the Region? Is the region ready for IT? This session will start by the experience of the Central Bank of Morocco; it will then be followed by presentations on the cases of Tunisia and Morocco.

Session 6: Are IT preconditions satisfied in the region? This session will look at case of Egypt and Turkey.

Session 7: Are IT preconditions satisfied in the region: forecasting and technical capacities? This session will put emphasis on the monetary policy transmission and targeting mechanisms in the MENA Region and more specifically in cases like Egypt, Morocco and Tunisia

Session 8: Closing session This session will be a panel discussion on financial integration, financial stability and monetary policy issues.

Download Workshop Agenda

Workshop Presented Papers

Efficiency of Monetary Policies in a Changing 
Macroeconomic Environment 
Lahcen Achy, Adel Boughrara, Mongi Boughzala, Hasan Ersel and 
Fatih Özatay
Download Paper  

Are the Conditions for the Adoption of IT Satisfied in Morocco? 
Adel Boughrara, Mongi Boughzala and Hassouna Moussa
Download Paper  

Credibility of Inflation Targeting in Morocco and Tunisia 
Adel Boughrara, Mongi Boughzala and Hassouna Moussa
Download Paper  

The Monetary Transmission Mechanism in Egypt 
Rania Al-Mashat and Andreas Billmeier
Download Paper  

Monetary Policy Transmission and Targeting 
Mechanisms in the MENA Region 
Simon Neaime
Download a paper version / Download powerpoint version

Monetary Transmission Mechanisms in Morocco and Tunisia 
Adel Boughrara
Download Paper  

Inflation Control and Economic Instability 
Hassouna Moussa
Download Paper  

The Tunisian Financial System and Inflation Targeting 
Adel Boughrara, Mongi Boughzala and Hassouna Moussa
Download Paper  

Inflation Targeting in Turkey 
Hasan Ersel and Fatih Özatay
Download Paper  

Monetary Policy in Egypt:  A Retrospective and Preparedness for Inflation Targeting 
Rania Al-Mashat
Download Paper  

The Transmission Mechanism of Monetary Policy in Morocco: An Analytical Framework
Pierre-Richard Agenor and Karim El Aynaoui
Download Paper  

Beyond Inflation Targeting: Assessing the Impacts and Policy Alternatives
Gerald Epstein and Erinc Yeldan
Download Paper  

Preconditions for IT: Financial soundness
Thierry Bracke
Download Presentation