A Simple Macrofiscal Model for Policy Analysis: An Application to Morocco
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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
Subject:
Exchange rate arrangements Foreign exchange Inflation targeting Monetary policy Output gap Production Public debt Real exchange rates
Frequency:
regular
English
Publication Date:
July 16, 2021
ISBN/ISSN:
9781513592985/1018-5941
Stock No:
WPIEA2021190
Pages:
35
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