This paper investigates the relationship between trade balance, real exchange rates, and incomes in Tunisia by adopting the autoregressive distributed model (ARDL) by using data over the period of 1980 to 2018. We also used the bound test cointegration between variables at a 10% significant level. Our findings show that the Tunisia economy does not match the Marshall-Lerner condition in the long run, that provides an accurate description of the particular situation for which a country currency devaluation or depreciation its currency under both fixed or floating regime is predicted to enhance the trade balance of a country, which means there is no j-curve phenomenon in the long run, which tries to differentiate between the change of short-run and long-run effects in the change of exchange rate on the trade balance. Our findings match the Marshall-Lerner condition in the short run and can confirm the existing j-curve in the case of Tunisia.

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Fiscal policy is an essential tool that policymakers use for guiding the economy. Thus, the effects of fiscal policy may affect many aspects of our lives, including the impact of carbon dioxide (CO2) emissions. This article investigates the role of fiscal policy, in addition to gross domestic product (GDP), innovation, and financial development, in mitigating CO2 emissions in the context of the Environmental Kuznets Curve theory in the Group of Twenty (G20) countries from 1995 to 2019. The study implied the autoregressive distributed lag of pooled mean group (ARDL-PMG) approach to analyze the suggested model. The results revealed the validity of the model for the G20 countries, as well as a long-run cointegration between the study variables. The results also showed that fiscal policy is associated positively with CO2 emissions. Hence, we recommend reconsidering the applied financial policy, redirecting it to support clean energy projects, provide incentives for projects combating environmental degradation, and relying on environmentally friendly energy.

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Inflation is an essential issue in the economy. Many countries try to target inflation to reduce the erosion of savings for citizens, so many researchers have focused on this topic. The current study attempts to determine whether the news or an unexpected change in the consumer prices index basket affects the volatility of the prices asymmetrically. The result shows that four of twelve sectors are not affected by the news, either because they have a constant variance or because of the not significance of EGARCH. The rest sectors show different responses to high price news and low-price news either by magnitude or signs. Generally, we can notice that high prices with significant negative shocks have a more massive effect on future fluctuation. The shocks that affect its future fluctuation are positive and negative for low prices.