Morocco: A Practical Approach to Monetary Policy Analysis in a Country with Capital Controls

Mokhtar Benlamine, Ales Bulir, Meryem Farouki, Ágnes Horváth, Faiçal Hossaini, Hasnae El Idrissi, Zineb Iraoui, Mihály Kovács, Douglas Laxton, Anass Maaroufi, Katalin Szilágyi, Mohamed Taamouti and David Vavra

No 2018/027, IMF Working Papers from International Monetary Fund

Abstract: The Central Bank of Morocco has been working on developing a Forecasting and Policy Analysis System (FPAS) to support a gradual move toward a more flexible exchange rate regime and the eventual adoption of a full-fledged inflation-targeting (IT) regime. At the center of the FPAS is a quarterly projection model that was tailored for two different types of exchange rate regimes. Presently, the fixed exchange rate model version is to be used during the pre-IT period, while the flexible exchange rate model version is to be used to prepare alternative scenarios for monetary policy decision makers to discuss the potential policy implications of shocks under an IT regime.

Keywords: WP; interest rate; monetary policy; forecasting and simulation; model construction; BAM policy rate; version of the MQPM; money-market interest rate differential; transmission mechanism; inflation aversion; model economy; Conventional peg; Exchange rate arrangements; Exchange rate flexibility; Exchange rates; Inflation; Global (search for similar items in EconPapers)
Pages: 29
Date: 2018-02-14
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Citations: View citations in EconPapers (8)

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