THE INTERACTION BETWEEN MONETARY POLICY AND MACROPRUDENTIAL TOOLS: EMPIRICAL EVIDENCE OF THE SOUTHERN MEDITERRANEAN COUNTRIES


    Authors:

    SAOUSSEN OUHIBI, SAMI HAMMAMI

    Citation:

    Ouhibi, S. and Hammami, S. (2021). The interaction between monetary policy and macroprudential tools: Empirical evidence of the southern Mediterranean countries. Bulletin of Business and Economics, 10(2), 51-66.

    Abstract:

    In this paper, we analyze the interactions between monetary policy and macroprudential tools in the southern Mediterranean over the period 2000-2017. This research examines the relationship between monetary policy and macroprudential tools using a structural vector Auto-regressive model (SVAR). Our empirical results show that macroprudential tools should be used only as a complement to monetary policy to achieve financial stability but cannot be a substitute to achieve price stability.

    Keywords:

    monetary policy, macro prudential tools, interaction, SVAR

    Jel Code:

    E12, E42

    Article Type:

    Research Paper

    Pages:

    51-66

    Publisher:

    Research Foundation for Humanity (RFH)


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