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277568

The impact of monetization on the Tunisian economy using a simple DSGE model

Article

Last updated: 29 Dec 2024

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Abstract

The presence of money in the economy is mostly considered obvious. This chapter investigates the effect of monetization on the Tunisian economy with a Dynamic Stochastic General Equilibrium (DSGE) model. A Neo-Keynesian (NK) model with price stickiness is carried out in this study. The simple model includes households, firms and a monetary authority. The economic model is solved using Matlab Dynare software. At first, this study focuses on a brief history of monetization in Tunisia. Then, it illustrates a simple DSGE model without money and reviews theoretical and empirical studies. Finally, it presents the model with monetization as well as analyzes the findings. The model's properties are described by impulse response functions of identified structural shocks pertinent to the economy. 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.

DOI

10.21608/msamsj.2022.180411.1002

Keywords

Dynamic Stochastic General Equilibrium, Money supply, New Keynesian, Monetary policy

Authors

First Name

Sarra

Last Name

Ben Chaabane

MiddleName

-

Affiliation

Economics, Faculty of Economics and Management of Mahdia, University of Monastir, Tunisia

Email

sarra.benchaabane@fsegma.u-monastir.tn

City

Tunisia

Orcid

0000-0002-0827-3260

First Name

Haykel

Last Name

Hadj Salem

MiddleName

-

Affiliation

Department Of Development University of Monastir, DEFI ESSECT Tunis, Tunisia.

Email

haykelhs@yahoo.com

City

Tunisia

Orcid

0000-0002-6134-4785

Volume

2

Article Issue

1

Related Issue

38125

Issue Date

2023-01-01

Receive Date

2022-12-15

Publish Date

2023-01-01

Page Start

93

Page End

137

Print ISSN

2974-3028

Online ISSN

2974-3036

Link

https://msamsj.journals.ekb.eg/article_277568.html

Detail API

https://msamsj.journals.ekb.eg/service?article_code=277568

Order

277,568

Type

Original Article

Type Code

2,535

Publication Type

Journal

Publication Title

MSA-Management Sciences Journal

Publication Link

https://msamsj.journals.ekb.eg/

MainTitle

The impact of monetization on the Tunisian economy using a simple DSGE model

Details

Type

Article

Created At

23 Jan 2023