Determinants of Inflation in Tunisia: Using Structural Modeling

The aim of this paper is to advance a structural modeling of the monetary politics in Tunisia and to provide elements that contribute to the understanding of the determinants of the inflation. This study is going to refer in relation to the theoretical foundations of the Phillips Curve, to construct the fundamental equation to use by structural macro econometrics models that considers the most direct determinants of the inflation. In section 2 of this paper, the structural models of inflation are exposed in the simplest variant used internationally by the central banks. In section 3, one is going to present the results of the evaluation of three econometrics models with data of the economy Tunisian based on the specification that the Curve of Phillips proposes. Finally, in section 4, the results are analyzed and the implications are valued in relation to the conduct of the monetary politics in Tunisia. Key words: Tunisia, inflation, structural modeling