Monetary Policy Under Uncertainty: The Case of COVID-19 Health Crisis in Morocco
##plugins.themes.bootstrap3.article.sidebar##
PDF
Submitted Aug 24, 2022
Published Sep 27, 2022
Published Sep 27, 2022
DOI
Abstract viewed = 127 times
Issue
Section
Articles
##plugins.themes.bootstrap3.article.main##
The COVID-19 health crisis marked the beginning of a series of shocks that are a source of uncertainty that impacts the decision-making process of central banks around the world. The aim of this paper is to analyze the conduct of Morocco's monetary policy in a context of uncertainty, that of the COVID-19 health crisis. The results of our analysis have shown that in a context of uncertainty, the central bank is called upon to increase its communication to better guide the expectations of economic agents and ensure better transmission of the various monetary policy measures to the real economy. In addition, it must show itself to be credible by transmitting clear signals to restore the confidence of economic agents. However, central bank action alone is not enough. Conditions must be met, on the credit supply and credit demand sides, to remedy the structural imbalances that are holding back the competitiveness of our economy and to counter uncertainty.
Keywords: COVID-19 Health Crisis, Monetary Policy, Uncertainty.
References
Bank Al-Maghrib. Revue Mensuelle de la Conjoncture Économique, Monétaire et Financière. [Internet] 2021. Retrieved from: https://www.bkam.ma/Publications-statistiques-et-recherche/Calendrier/Revue-mensuelle-de-la-conjoncture-economique-monetaire-et-financiere.
Bank Al-Maghrib. Rapport sur la politique monétaire, N°58/2021. [Internet] 2021. Retrieved from: https://www.bkam.ma/Publications-statistiques-et-recherche/Documents-d-analyse-et-de-reference/Rapport-sur-la-politique-monetaire/Rapport-sur-la-politique-monetaire-2021.
Bank Al-Maghrib. Rapports annuels sur la supervision bancaire. [Internet] 2006-2019. Retrieved from: https://www.bkam.ma/Publications-statistiques-et-recherche/Publications-institutionnelles/Rapport-annuel-sur-la-supervision-bancaire.
Bank Al-Maghrib. Rapports annuels présentés à Sa majesté le Roi. [Internet] 2006-2019. Retrieved from: https://www.bkam.ma/Publications-statistiques-et-recherche/Publications-institutionnelles/Rapport-annuel-presente-a-sm-le-roi
Baskaya, S., Kara, H., Mutluer, D. (2008). Expectations, Communication and Monetary Policy in Turkey, Working Papers 0801, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
Becker R. G., Dwolatzky B., Karakitsos E., Rustem B. (1986). The simultaneous use of rival models in policy optimization. The economic journal, 96, 425-448.
Brainard W. (1967). Uncertainty and the effectiveness of monetary policy. American economic Review, 57, 411-425.
Brock W., Durlauf S., West K. (2004). Model Uncertainty and Policy Evaluation. Some Theory and Empirics. NBER Working Paper, n° 10916.
Cukierman A. (1992). Central bank strategy, Credibility, and Independence. MIT Press.
Drumetz F., Pfister C., Sahuc J-G. (2015). Politique monétaire. Paris, De boeck, 2, 222-223.
Fuhrer J., & Moore G. (1995). Monetary policy trade-offs and the correlation between nominal interest rates and real output. American Economic Review, 85, 219-239.
Gambacorta L., Illes A., Lombardi M. J. (2014). Has the transmission of policy rates to lending rates been impaired by the Global Financial Crisis? Working Paper n° 477, Bank for International Settlements.
Hristov, N., Hulsewig, O., Wollmershauser, T. (2014). The interest rate pass-through in the Euro area during the global financial crisis. Journal of Banking and Finance, 48, 104-119.
Hutchinson, J., & Praet, P. (2016). La politique monétaire en période d’incertitude. Revue d’économie financière, N°121, 79-96.
Illes A., Lombardi M. J. and Mizen P. (2015). Why did bank lending rates diverge from policy rates after the financial crisis? Working paper n°486, Bank for International Settlements.
Issing, O. (2000). Europe: Common Money – Political Union? Economic Affairs, 20(1), 33‑39. https://doi.org/10.1111/1468-0270.00204.
Kimura, T., & Kurozumi, T. (2007). Optimal monetary policy in a micro-founded model with parameter uncertainty. Journal of economic dynamics and control, 31, 399-431.
Le Bihan H., & Sahuc J-G. (2002). Règles de politique monétaire en présence d’incertitude : une synthèse. Revue d’Economie Politique, 3, 349-386.
Rotemberg J., & Woodford M. (1997). An Optimization-based econometric framework for the evaluation of monetary policy. NBER Macroeconomics Annual, B. Bernanke & J. Rotemberg (eds), 297-361, MIT Press, Cambridge.
Rudebusch, G., & Svensson, L. (2002). Euro system monetary targeting: Lessons from U.S. data. European Economic Review, 46, 417-442.
Senegas, M-A. (2002). La politique monétaire face à l’incertitude : un survol méthodologique des contributions relatives à la zone Euro. Revue d’économie financière, 65(1), 183.
Svensson, L. E. O. (1999). Inflation targeting as a monetary policy rule. Journal of Monetary Economics, 43.
Taylor, J. B. (1993). Discretion versus policy rules in practice. Carnegie Rochester Conference, Series on Public Policy, 39.
Theil, H. (1958). Economic forecasts and policy. North-Holland, Amsterdam.
Yellen, J. (2011). Unconventional Monetary Policy and Central Bank Communications Board of Governors of the Federal Reserve System. The U.S. Monetary Policy Forum New York, February.
Weidmann, J. (2018). Central bank communication as an instrument of monetary policy. Centre for European Economic Research, Mannheim, May.
Downloads
Download data is not yet available.
##plugins.themes.bootstrap3.article.details##
How to Cite
Najab, A., Lajfari, K., & Amrani, O. (2022). Monetary Policy Under Uncertainty: The Case of COVID-19 Health Crisis in Morocco. European Journal of Business and Management Research, 7(5), 70–76. https://doi.org/10.24018/ejbmr.2022.7.5.1642
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
