{
  "title": "Morocco: A Practical Approach to Monetary Policy Analysis in a Country with Capital Controls",
  "publication": "IMF Working Papers, February 14, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2018/02/14/morocco-a-practical-approach-to-monetary-policy-analysis-in-a-country-with-capital-controls-45630",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Executive summary",
      "content": "- The Central Bank of Morocco has been 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.\n- At the center of the FPAS is a quarterly projection model tailored for two different types of exchange rate regimes:\n  - A fixed exchange rate model version to be used during the pre-IT period.\n  - A flexible exchange rate model version to prepare alternative scenarios for monetary policy decision makers to discuss the potential policy implications of shocks under an IT regime."
    },
    {
      "heading": "Key findings and model features",
      "content": "- The FPAS uses a quarterly projection model designed specifically for Morocco’s policy transition from a conventional peg toward exchange rate flexibility and IT.\n- Model applications:\n  - Fixed exchange rate model: operational during pre-IT period.\n  - Flexible exchange rate model: used to simulate alternative scenarios under an IT regime and to analyze policy implications of shocks.\n- The system is intended to support gradual institutional and operational changes at the Central Bank of Morocco as it moves toward IT."
    },
    {
      "heading": "Policy analysis and applications",
      "content": "- Purpose:\n  - To inform monetary policy decision makers by providing alternative scenarios and shock analysis under different exchange rate regimes.\n- Central capabilities:\n  - Forecasting and policy simulation across regime versions (fixed and flexible).\n  - Analysis of transmission mechanism elements referenced in keywords: BAM policy rate, interest rate, money-market interest rate differential, inflation aversion."
    },
    {
      "heading": "Subjects and keywords (as provided)",
      "content": "- Subject: Conventional peg, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, Foreign exchange, Inflation, Prices\n- Keywords: BAM policy rate, Conventional peg, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, forecasting and simulation, Global, Inflation, inflation aversion, interest rate, model construction, model economy, monetary policy, money-market interest rate differential, transmission mechanism, version of the MQPM, WP\n\n---\n\n Content in this bundle\n\n- Wp1827\n  - Wp1827 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp1827 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/02/14/morocco-a-practical-approach-to-monetary-policy-analysis-in-a-country-with-capital-controls-45630"
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    "Authors: Mokhtar Benlamine, Meryem Farouki, Ágnes Horváth, Faical Hossaini, Hasnae El Idrissi, Zineb Iraoui, Mihály Kovács, Douglas Laxton, Anass Maaroufi, Katalin Szilágyi, Mohamed Taamouti, David Vávra",
    "Published: February 14, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484341810.001",
    "The Central Bank of Morocco has been 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 tailored for two different types of exchange rate regimes:",
    "The FPAS uses a quarterly projection model designed specifically for Morocco’s policy transition from a conventional peg toward exchange rate flexibility and IT.",
    "Model applications:",
    "The system is intended to support gradual institutional and operational changes at the Central Bank of Morocco as it moves toward IT.",
    "Purpose:",
    "Central capabilities:",
    "Subject: Conventional peg, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, Foreign exchange, Inflation, Prices",
    "Keywords: BAM policy rate, Conventional peg, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, forecasting and simulation, Global, Inflation, inflation aversion, interest rate, model construction, model economy, monetary policy, money-market interest rate differential, transmission mechanism, version of the MQPM, WP",
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