Monetary and Fiscal Policy in an Estimated DSGE Model for Morocco

Anas Mossadak

MPRA Paper from University Library of Munich, Germany

Abstract: In this study we estimate a Dynamic Stochastic General Equilibrium (DSGE) model using Bayesian techniques to analyse the effects of monetary and fiscal policy in Morocco. The results suggest that a positive monetary policy shock generates a diminution of consumption, investment, output and inflation. A positive shock on government expenditures produces an increase in output and wage but generates also a decrease in private consumption and investment due to an increase in inflation and interest rate. Finally, a positive shock on capital tax produces a decrease in investment and thus in output. In general, the duration of monetary shock is shorter than fiscal shock; the first vanishes in about 10 quarters and the latter is more persistent and lasts more than 15 quarters.

Keywords: DSGE; NKM; bayesian estimation; monetary policy; fiscal policy; impulses responses. (search for similar items in EconPapers)
JEL-codes: C63 E52 E58 (search for similar items in EconPapers)
Date: 2013, Revised 2013
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Published in British Journal of Science 1 1.9(2013): pp. 1-17

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:104579

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