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Morocco: A Practical Approach to Monetary Policy Analysis in a Country with Capital Controls, Mokhtar Benlamine, Ales Bulir, Meryem Farouki, Ágnes Horváth, Faical Hossaini, Hasnae El Idrissi, Zineb Iraoui, Mihály Kovács, Douglas Laxton, Anass Maaroufi, Katalin Szilágyi, Mohamed Taamouti, David Vávra

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
Table Of Contents
Intro -- Cover -- Contents -- Abstract -- I. Introduction -- II. Morocco: Monetary Independence Under a Peg and Capital Controls -- III. Morocco: Main Features -- A. Capital controls and other regulations -- B. The fixed exchange rate regime and monetary policy -- C. Structure of the economy -- IV. The Moroccan Quarterly Projection Model (MQPM) -- A. A model for transition -- B. Special Features of the Moroccan QPM Model -- C. Selected Impulse Response Functions -- V. Conclusions and the Policy Uses of the QPM in Morocco -- References -- Tables -- 1. Modeling Solutions to Regime Differences -- 2. The MQPM Structure Under the Fixed Exchange Rate Regime -- Figures -- 1. Morocco: Macroeconomic Developments -- 2. Inflation and Monetary Transmission -- 3. A Positive One-Percent shock to Euro Area Inflation -- 4. An Increase in Household Consumption -- 5. An Increase in Domestic Inflation -- 6. Nominal Devaluation -- A1. Historical Simulations of the Interbank Rate -- A2. Core and Headline Inflation Rates -- A3. Domestic Demand Growth -- Annexes -- I. FPAS Technical Assistance in Morocco -- II. Empirical Validation of the Model -- III. Abbreviations Used in Table 2
Literary Form
non fiction
Physical Description
1 online resource (30 pages)
Specific Material Designation
Form Of Item

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