THE IMPACT OF MONETIZATION ON THE TUNISIAN ECONOMY USING A SIMPLE DSGE MODEL

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Date

2023

Journal Title

Journal ISSN

Volume Title

Type

Article

Publisher

MSA-Management science journal

Series Info

Volume: 2;Issue:1

Doi

Scientific Journal Rankings

Abstract

The presence of money in the economy is mostly considered obvious. This paper investigates the effect of monetization on the Tunisian economy with a Dynamic Stochastic General Equilibrium (DSGE) model. The article also intends to show the main driving forces behind Tunisian business cycle and to understand how the productivity and monetary shocks impact and transmit into the Tunisian economy. Two Small Open Economy Neo-Keynesian (NK) models with price stickiness without and with money are carried out in this study. The results show that the supply shock has a positive effect on the macroeconomic variables. Nevertheless, the monetary shock has negatively affected the variables, especially the output, the capital and wages

Description

1 ORCID iD 0000-0002-0827-3260 2 ORCID iD 0000-0002-6134-4785

Keywords

Monetization, money in utility, Tunisia, DSGE models, monetary policy

Citation

MSA University