1. Introduction / Mongi Boughzala and David Cobham -- Part I. Issues and Challenges: 2. Moving towards domestic monetary anchors: are financial markets ready in the Mediterranean region? / Thierry Bracke; 3. Fiscal policy and macroeconomic stability in Mediterranean countries / Michael Sturm and François Gurtner; 4. Capital mobility and the optimal monetary polity rule: a Tunisian case study / Mahmoud Sami Nabi and Ndiamé Diop; 5. Monetary policy transmission and targeting mechanisms in six MENA countries / Simone Neaime; 6. Monetary transmission mechanisms: the credit versus the interest rate channels / Adel Boughrara and Samir Ghazouani -- Part II. The Journey towards IT: 7. From Bretton Woods to inflation targeting: financial change and monetary policy evolution in Europe / David Cobham; 8. Monetary policy in Turkey: the reasons for introducing IT and the outcome / Hasan Ersel and Fatih Özatay; 9. The evolution of monetary policy in Egypt: and steps towards inflation targeting / Rania Al-Mashat; 10. The uncertain journey towards inflation targeting in Tunisia / Mongi Boughzada and Hassouna Moussa; 11. The journey towards inflation targeting in Morocco / Lahcen Achy and Adel Boughrara.