A Simple Macrofiscal Model for Policy Analysis: An Application to Morocco

Author/Editor:

Daniel Baksa ; Ales Bulir ; Roberto Cardarelli

Publication Date:

July 16, 2021

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

The paper describes a semistructural macrofiscal approach to simulating and forecasting macroeconomic policies. The model focuses on only a few variables that are consistent with the New Keynesian framework. Thanks to its simplicity, it facilitates an initial and intuitive understanding of monetary and fiscal policy transmission channels, and their main impact on economic activity. The model is adapted to Morocco and we demonstrate its application with an illustrative scenario of policy responses to a slower-than-expected recovery from the Covid-19 pandemic, under different monetary policy and exchange rate regimes.

Series:

Working Paper No. 2021/190

Frequency:

regular

English

Publication Date:

July 16, 2021

ISBN/ISSN:

9781513592985/1018-5941

Stock No:

WPIEA2021190

Pages:

35

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