IMF Working Papers

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

By Daniel Baksa, Ales Bulir, Roberto Cardarelli

July 16, 2021

Download PDF

Preview Citation

Format: Chicago

Daniel Baksa, Ales Bulir, and Roberto Cardarelli. A Simple Macrofiscal Model for Policy Analysis: An Application to Morocco, (USA: International Monetary Fund, 2021) accessed November 8, 2024

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.

Subject: Exchange rate arrangements, Foreign exchange, Inflation targeting, Monetary policy, Output gap, Production, Public debt, Real exchange rates

Keywords: B. aggregate supply, Exchange rate arrangements, Fiscal Multiplier, Fiscal Policy, Fiscal policy transmission channels, Fiscal policy transmission mechanisms, Global, Inflation targeting, Maghreb, Morocco, Output gap, Peg regime, Policy reaction function, Real exchange rates

Publication Details

  • Pages:

    35

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2021/190

  • Stock No:

    WPIEA2021190

  • ISBN:

    9781513592985

  • ISSN:

    1018-5941

You May Also Be Interested In...

Central Bank Digital Currency: Progress And Further Considerations

November 8, 2024

Lao People's Democratic Republic: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Lao People's Democratic Republic

November 8, 2024

The Federal Democratic Republic of Ethiopia: First Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for The Federal Democratic Republic of Ethiopia

November 4, 2024

Kenya: Seventh and Eighth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Reduction of Access, Augmentation and Rephasing of Access Under the Arrangements, Modifications of Performance Criteria, Waiver of Nonobservance of Performance Criteria, and Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya

November 1, 2024