An Empirical Invistigation of the Exchange Rate Pass-through to Prices in Morocco

1
Chatri Abdellatif
Chatri Abdellatif
2
Maarouf Abdelouahab Et Ragbi Aziz
Maarouf Abdelouahab Et Ragbi Aziz
1 University Med V, Rabat, Morocco

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In this paper, we use Structural Vector Autoregressive model to evaluate the degree of exchanges rate pass-through to domestic prices. Our results suggest that the responsiveness of the later is low overall, decreases over time and it is higher for tradable than non-tradable goods. The low inflation environment, the modernization of the monetary policy framework and the country’s import structure are the main factors explaining these results. This would facilitate the implementation of a more flexible exchange rate regime and explicit long-run inflation objective in Morocco.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Chatri Abdellatif. 2016. \u201cAn Empirical Invistigation of the Exchange Rate Pass-through to Prices in Morocco\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 16 (GJMBR Volume 16 Issue B5): .

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GJMBR Volume 16 Issue B5
Pg. 21- 31
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: P22 , E30
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September 3, 2016

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In this paper, we use Structural Vector Autoregressive model to evaluate the degree of exchanges rate pass-through to domestic prices. Our results suggest that the responsiveness of the later is low overall, decreases over time and it is higher for tradable than non-tradable goods. The low inflation environment, the modernization of the monetary policy framework and the country’s import structure are the main factors explaining these results. This would facilitate the implementation of a more flexible exchange rate regime and explicit long-run inflation objective in Morocco.

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An Empirical Invistigation of the Exchange Rate Pass-through to Prices in Morocco

Chatri Abdellatif
Chatri Abdellatif University Med V, Rabat, Morocco
Maarouf Abdelouahab Et Ragbi Aziz
Maarouf Abdelouahab Et Ragbi Aziz

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