The purpose of this paper is to evaluate the behavior of monetary authorities in Tunisia and Egypt, in response to …-term interest rate in Tunisia and Egypt using quarterly data covering the period 1998.Q4-2013.Q2. We find strong evidence that the …

of financial uncertainty over the period 1969-2008. We find evidence in favor of a systematic response to financial … uncertainty over and above that to expected inflation, output gap, and output growth. However, this evidence regards the Greenspan …-Bernanke period only. Focusing on this period, the "risk-management" approach is found to be responsible for monetary policy easings …