Inflation Targeting in MENA Countries

'...serves as a good reference regarding the experience of inflation targeting in MENA countries and the way forward.' - Middle East Development Journal

LAHCEN ACHY Professor of Economics at the National Institute of Statistics and Applied Economics (INSEA, Rabat, Morocco) and Senior Economist at the Carnegie Middle East Center in Beirut RANIA AL-MASHAT Assistant Sub-Governor and Head of Monetary Policy at the Central Bank of Egypt since October 2006 ADEL BOUGHRARA Associate Professor at the University of Sousse, Tunisia, and is currently the Director of the Doctoral school in Economics and Management there THEIRRY BRACKE Deputy Head of Division of the EU Neighbouring Regions Division of the European Central Bank NDIAME DIOP Lead Economist at the World Bank in South Asia, the Trade Department and the Middle East and North Africa Economics Department HASAN ERSEL Teacher Part-time at the Sabanc? University in Istanbul, Turkey SAMIR GHAZOUANI Professor of Econometrics at the University of 7 November at Carthage, Tunisia FRANCOIS GURTNER Economist in the EU Neighbouring Regions Division of the European Central Bank, mainly working on MENA countries with a focus on Palestine HASSOUNA MOUSSA Professor of Economics at Acadia University, Nova Scotia, Canada MAHMOUD SAMI NABI Assistant Professor of Economics at IHEC Sousse, a Research Fellow of the LEGI laboratory at Tunisia Polytechnic School (TPS) and a Research Associate of the Economic Research Forum SIMON NEAIME Professor and Chair of the Department of Economics, American University of Beirut, Lebanon FATIH OEZATAY Has been a Faculty Member at the TOBB-University of Economics and Technology and the Director of the Economic Policy Research Institute at the Economic Policy Research Foundation of Turkey (TEPAV) since April 2006 MICHAEL STURM Principal Economist in the EU Neighbouring Regions Division of the European Central Bank, in Middle Eastern and Mediterranean countries

PART I: ISSUES AND CHALLENGES Moving towards Domestic Monetary Anchors - are Financial Markets Ready in the Mediterranean Region?; T.Bracke Fiscal Policy and Macroeconomic Stability in Mediterranean Countries; M.Sturm & F.Gurtner Capital Mobility and the Optimal Monetary Policy Rule: a Tunisian Case Study; M.Sami Nabi & N.Diop Monetary Policy Transmission and Targeting Mechanisms in Six MENA Countries; S.Neaime Monetary Transmission Mechanisms: the Credit Versus the Interest Rate Channel; A.Boughrara & S.Ghazouani PART II: THE JOURNEY TOWARDS IT From Bretton Woods to Inflation Targeting: Financial Change and Monetary Policy Evolution in Europe; D.Cobham Monetary Policy in Turkey: the Reasons for Introducing Inflation Targeting and the Outcome; H.Ersel & F.OEzatay The Evolution of Monetary Policy in Egypt and Steps Towards Inflation Targeting; R.Al-Mashat The Uncertain Journey towards Inflation Targeting in Tunisia; M.Boughzala & H.Moussa The Journey towards Inflation Targeting in Morocco; L.Achy & A.Boughrara