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Efficiency of Monetary policy after the Adoption of Inflation Targeting: The Case of Bank Al-Maghreb
[Efficacité de la Politique Monétaire après l'adoption du ciblage d'inflation : Cas de Bank-Al Maghreb]

Author

Listed:
  • Ahmed Hefnaoui

    (Faculté des Sciences Juridiques Economiques et Sociales Mohammedia, Université Hassan II de Casablanca)

  • Ibnouzahir Youssef

    (Faculté des Sciences Juridiques Economiques et Sociales Mohammedia, Université Hassan II de Casablanca)

Abstract

This study assesses the effectiveness of Morocco's monetary policy following the adoption of inflation targeting in 2006. The objective is to evaluate whether this strategy has stabilized inflation and supported economic growth. The methodology is based on a VAR model using quarterly data from 2007 to 2023, with Granger causality tests and impulse response functions to capture the simultaneous effects between monetary variables. The results indicate that inflation in Morocco is driven by shocks to the exchange rate and money supply, while the effect of the policy rate remains limited. Although monetary interventions have short-term effectiveness, their moderate impact suggests the need for structural reforms to enhance inflation targeting efficiency.

Suggested Citation

  • Ahmed Hefnaoui & Ibnouzahir Youssef, 2024. "Efficiency of Monetary policy after the Adoption of Inflation Targeting: The Case of Bank Al-Maghreb [Efficacité de la Politique Monétaire après l'adoption du ciblage d'inflation : Cas de Bank-Al M," Post-Print hal-04737587, HAL.
    • Handle: RePEc:hal:journl:hal-04737587
    DOI: 10.5281/zenodo.13918718
    Note: View the original document on HAL open archive server: https://hal.science/hal-04737587v1
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    Keywords

    Inflation; Inflation targeting; Monetary policy; VAR model; Policy rate; Ciblage d'inflation; Politique monétaire; Modèle VAR; Taux directeur;
    All these keywords.

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