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We investigate the response of aggregate demand (AD) components and inflation to monetary policy (MP) shocks in the Tunisian context where studies on this issue are rare. By estimating SVAR models on historical data ending in 2021, we found that: i) The Tunisian Central Bank's (TCB) efforts to control inflation through interest rate tightening end up significantly slowing down private investment and consumption, while inflation response is not enough to mitigate the recently exacerbated inflationary trend; ii) Such efforts are hampered, if not outweighed, by the "pass-through" effect associated with exchange-rate continued depreciation; iii) The interest rate is Granger-caused by the exchange rate rather than the inflation rate, suggesting that de jure and de facto objectives of the TCB are divergent; and iv) The continued exchange rate depreciation alone is not enough to address the structural trade deficit. In light of these findings, we suggest that i) The transition from a discretionary MP to a rule-based inflation-targeting MP and with a well-defined role for the exchange rate, would help TCB gain credibility and improve efficiency of its MP; and ii) Tunisian policymakers should also consider consolidating MP in achieving its price stabilization objective particularly through implementing "supply-side policy" actions aiming at promoting economic growth and addressing unsustainable fiscal and external imbalances. [ABSTRACT FROM AUTHOR]

This study investigates whether dynamic bond markets lead to more macroeconomic stability in eight East Asian countries by distinguishing between advanced and emerging economies. Contrary to previous studies, we relax the strong assumption of homogenous investors by adopting a frequency approach based on the wavelet methodology to measure the relationship between the bond market and macroeconomic stability through both the time and frequency dimensions. Our analysis reveals three main findings. First, the interaction between the bond market and macroeconomic variables is more pronounced in emerging economies than in developed economies. Second, the relationship between the bond market and macroeconomic indicators varies over time, as it is more pronounced during turmoil periods, and across frequencies, as we show that the relationship is observed in the short and medium (long) term for emerging (advanced) East Asian economies. Third, there is divergence in the relationship regarding the level and volatility of the macroeconomic indicators. Indeed, for emerging economies, the relationship is more pronounced in the first moments; however, for advanced economies, it is more pronounced in the second moments. [ABSTRACT FROM AUTHOR]

This document is a correction notice for an article titled "Bond market and macroeconomic stability in East Asia: a nonlinear causality analysis" published in the Annals of Operations Research. The correction was made to acknowledge the oversight of the author during proofing. The first author expresses gratitude to the Deanship of Scientific Research at Umm Al-Qura University for their support. Springer Nature, the publisher, remains neutral regarding jurisdictional claims and institutional affiliations. The authors of the article are Jamel Boukhatem, Zied Ftiti, and Jean Michel Sahut. [Extracted from the article]

This paper applies a new bootstrap Autoregressive Distributed Lag (A R D L) approach to examine the nexus between trade openness, renewable electricity consumption, and economic growth for seven countries in the Asia-Pacific region during 1980–2017 period. In fact, there is no evidence of cointegration among real trade openness, electricity consumption, and real G D P per capita in countries, with the exception of Malaysia, where real G D P serves as dependent variable. However, cointegration does manifest in the cases of Indonesia, Japan, South Korea, and Thailand when trade openness is used as the dependent variable. A similar outcome is observed for Indonesia, Malaysia, and Thailand when renewable electricity consumption is used as the dependent variable. A short-run analysis reveals mixed results in term of the direction of the causality among different variables for various countries. Such results have implications for trade, energy, and environmental policies. One implication is that any environmental policy aiming to reduce the use of non-renewable energy and carbon dioxide emissions will inevitably lead to greater renewable energy consumption, which in turn may enhance trade openness and ultimately accelerate economic growth. • We empirically investigate trade-energy-growth nexus in Asia-Pacific countries using the bootstrap ARDL approach. • In the long run, both the trade-led growth and the growth-led trade hypothesis hold. • In the short-run, there are feedback relationships between trade openness, renewable electricity consumption, and economic growth. • Well-designed domestic economic policies promoting economic growth will increase renewable energy consumption. [ABSTRACT FROM AUTHOR]