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

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,
Mr. Ales Bulir
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, and
Mr. Roberto Cardarelli
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Series:
IMF Working Papers
Volume/Issue:
Volume 2021: Issue 190
Language:
English
Publication Date:
16 Jul 2021
DOI:
https://doi.org/10.5089/9781513592985.001
ISBN:
9781513592985
ISSN:
1018-5941
Pages:
35
Keywords:
Fiscal Policy; Morocco; Fiscal Multiplier; fiscal policy transmission channels; Policy reaction function; B. aggregate supply; peg regime; fiscal policy transmission mechanisms; Exchange rate arrangements; Real exchange rates; Output gap; Inflation targeting; Maghreb; Global
Legal-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.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2021: Issue 190