Loading menu…

An Empirical Investigation of the Exchange Rate Pass-Through to Prices in Morocco

ยง Mohammed V University, Rabat, Morocco.

Send Message

To: Author

An Empirical Investigation of the Exchange Rate Pass-Through to Prices in Morocco

Article Fingerprint

ReserarchID

75563

An Empirical Investigation of the Exchange Rate Pass-Through to Prices in Morocco Banner

Key Research Insights

Synthesized scholarly intelligence & interactive research assistant
  • English
  • Afrikaans
  • Albanian
  • Amharic
  • Arabic
  • Armenian
  • Azerbaijani
  • Basque
  • Belarusian
  • Bengali
  • Bosnian
  • Bulgarian
  • Catalan
  • Cebuano
  • Chichewa
  • Chinese (Simplified)
  • Chinese (Traditional)
  • Corsican
  • Croatian
  • Czech
  • Danish
  • Dutch
  • Esperanto
  • Estonian
  • Filipino
  • Finnish
  • French
  • Frisian
  • Galician
  • Georgian
  • German
  • Greek
  • Gujarati
  • Haitian Creole
  • Hausa
  • Hawaiian
  • Hebrew
  • Hindi
  • Hmong
  • Hungarian
  • Icelandic
  • Igbo
  • Indonesian
  • Irish
  • Italian
  • Japanese
  • Javanese
  • Kannada
  • Kazakh
  • Khmer
  • Korean
  • Kurdish (Kurmanji)
  • Kyrgyz
  • Lao
  • Latin
  • Latvian
  • Lithuanian
  • Luxembourgish
  • Macedonian
  • Malagasy
  • Malay
  • Malayalam
  • Maltese
  • Maori
  • Marathi
  • Mongolian
  • Myanmar (Burmese)
  • Nepali
  • Norwegian
  • Pashto
  • Persian
  • Polish
  • Portuguese
  • Punjabi
  • Romanian
  • Russian
  • Samoan
  • Scots Gaelic
  • Serbian
  • Sesotho
  • Shona
  • Sindhi
  • Sinhala
  • Slovak
  • Slovenian
  • Somali
  • Spanish
  • Sundanese
  • Swahili
  • Swedish
  • Tajik
  • Tamil
  • Telugu
  • Thai
  • Turkish
  • Ukrainian
  • Urdu
  • Uzbek
  • Vietnamese
  • Welsh
  • Xhosa
  • Yiddish
  • Yoruba
  • Zulu
Reading Preferences
Font Size
Line Spacing
Background
This converted HTML version may contain rendering inconsistencies. Please refer to the PDF for the authoritative version, or click here to provide feedback.

Abstract

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 countryโ€™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.

References

38 Cites in Article
  1. 1. Y. Aksoy,et Y (2000). E Riyanto ยซ Exchange Rate Passthrough in Vertically Related Markets ยป, Review of International Economics, vol. Review of International Economics, 2000, 235-251.
  2. 2. Bacchetta P (2005). et Van Wincoop E., ยซ A theory of the currency denomination of international trade ยป, Journal of International Economics, 67(2). Journal of International Economics, 67(2), 295-319.
  3. 3. Bacchetta P (2003). Why do consumer prices react less than import prices to exchange rates. Journal of European Economics Association, 1(1), 662-670.
  4. 4. J. Bailliu,E. Fujii (2004). Exchange rate pass-through and the inflation environment in industrialized countries: an empirical investigation. Bank of Canada Working Paper
  5. 5. J. Bailliu,H. Bouakez (2004). et Bouakez H., ยซ La transmission des variations des taux de change dans les pays industrialisรฉs ยป, Revue de la Banque du Canada, printemps. Revue de la Banque du Canada, 2004, 21-31.
  6. 6. O. Bakkou (2015). Evaluation of Exchanges Rate Pass-through to Domestic Prices in Morocco. American Journal of Economics, 5(5), 513-525.
  7. 7. Karim Barhoumi (2006). Barhoumi, K., ยซDifferences in Long Run Exchange Rate Pass-Through In to Import Prices In developing Countries: An Empirical Investigationยป, Economic Modelling, nยฐ 23. Economic Modelling, 23(6), 926-951.
  8. 8. K. Barhoumi,Vol (2005). Exchange Rate Pass-Through Into Import Prices In Developing Countries: An Empirical Investigation. Economics Bulletin, 3(26), 1-14.
  9. 9. A. Belaisch (2003). Exchange Rate Pass-Through in Brazil. IMF Working Paper nยฐ 03/141, 1.
  10. 10. Paul Bergin,Robert Feenstra (1998). Bergin P. et Feenstra R., ยซ Staggered price setting and endogenous persistence ยป, NBER. NBER, Working Paper, 6492.
  11. 11. C. Betts,T. Kehoe (2001). Real Exchange Rate Movements and the Rela tive Price of Nontraded Goods.
  12. 12. A. Billmeier,L. Bonato (2002). Exchange rate passthrough and monetary policy in Croatia. IMF Working Paper, 109.
  13. 13. Hafedh Bouakez,Nooman Rebei (2008). Has exchange rate pass-through really declined? Evidence from Canada. Journal of International Economics, 75(2), 249-267.
  14. 14. A. Burstein (2007). T., M Eichenbaum et S Rebelo ยซ Modeling Exchange Rate Passthrough after Large Devaluations ยป, Journal of Monetary Economics, vol. Journal of Monetary Economics, 2007, 346-368.
  15. 15. Ariel Burstein,Joao Neves,Sergio Rebelo (2000). Burstein, A. T., J. C. Neves et S. Rebelo. ยซ Distribution Costs and Real Exchange Rate Dynamics During Exchange-Rate-Based Stabilizations ยป. NBER, working paper no, 7862.
  16. 16. E. Choudhri,D. Hakura (2001). Choudhri, E.,Hakura, D., ยซ Exchange rate passthrough to domestic prices: does the inflationary environment matter?. ยป IMF Working Paper No. 01/194
  17. 17. CaรญZorzi M.,Hahn E.,Sร nchez M. (2007). Exchange rate pass-through in emerging markets. Working Paper Series, 739
  18. 18. Corsetti G (2005). et Pesenti P., ยซ International dimensions of optimal monetary policy ยป, Journal of Monetary Economics, 52(2). Journal of Monetary Economics, 52(2), 281-305.
  19. 19. G. Corsetti,et Dedola (2002). Macroeconomics of International Price Discrimination. European Central Bank Working Paper, 176
  20. 20. Darvas Z. (2001). Exchange rate pass-through and real exchange rate in EU candidate countries. ยซExchange rate pass-through and real exchange rate in EU candidate countriesยป, National Bank of Hungary, Discussion paper nยฐ10/01
  21. 21. M. Devereux,J. et Yetman (2002). Etablissement des prix et transmission des variations du taux de change : la thรฉorie et les faits. Ajustement des prix et politique monรฉtaire, actes dโ€™un colloque tenu ร  la Banque du Canada
  22. 22. Devereux M (2000). Devereux M. B. ยซMonetary Policy, Exchange Rate Flexibility, and Exchange Rate Pass-Throughยป. Proceedings of a Conference held by the Bank of Canada
  23. 23. Soffer Eckstein,Y. (2008). ยซExchange rate passthrough implications for monetary policy: the Israeli caseยป, BIS Papers chapters, in Bank for International Settlements, volume 35. Bank for International Settlements, 35, 333-343.
  24. 24. (2006). The Relationship Between Exchange Rates and Inflation Targeting Revisited. ยซThe Relationship Between exchange Spleens and Inflation Targeting Revisitedยป, NBER Working Paper nยฐ12163, Cambridge, Massachusetts
  25. 25. Charles Engel (2000). ยซThe Responsiveness of Consumer Prices to Exchange Rates: A Synthesis of Some New Open Economy Macro Modelsยป The Manchester School 70. The Manchester School, 70(S1), 1-15.
  26. 26. (2006). Faruqee, H., ยซExchange Rate Pass-Through in the Euro Areaยป, IMF Staff Papers, nยฐ 53(1). IMF Staff Papers, 53(1), 63-88.
  27. 27. J. Gagnon,J. Ihrig (2004). ยซMonetary policy and exchange rate pass-throughยซ International Journal of Finance and Economics , vol. International Journal of Finance & Economics, 9, 315-338.
  28. 28. Linda Goldberg,Josรฉ Campa (2010). S and Campa, J M., ยซThe sensitivity of the CPI to exchange rates: distribution margins, imported inputs, and trade exposureยป, The Review of Economics and Statistics, Vol. Review of Economics and Statistics, 92(2), 392-407.
  29. 29. (2015). IMF (International Monetary Fund) ยซ 2015 Article IV consultationpress release ; staff report, and statement by the excutive director of Morocco ยป, IMF Country Report, No.
  30. 30. Robert Litterman (1986). Forecasting With Bayesian Vector Autoregressionsโ€”Five Years of Experience. Journal of Business & Economic Statistics, 1986(1), 25-38.
  31. 31. Mario Marazzi,Nathan Sheets (2007). Sheets ยซ Declining Exchange Rate Pass-Through to U.S Import Prices: The Potential Role of Global Factors ยป, Journal of International Money and Finance, vol. Journal of International Money and Finance, 26(6), 924-947.
  32. 32. Jonathan McCarthy (2000). Pass-Through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialized Economies. ยซPass-through of exchange rates and import prices to domestic inflation in some industrialized economiesยป, Staff Reports nยฐ111
  33. 33. (2016). Ministรจre de lโ€™รฉconomie et des finances, ยซ rapport sur le compensation ยป, 2016 : gov. ma/Docs/DB/
  34. 34. S. Murchison (2009). Exchange rate pass-through and monetary policy: how strong is the link?. Bank of Canada
  35. 35. J. Murray (2008). 050508_e. banque du canada
  36. 36. Nkunde Mwase (2006). An Empirical Investigation of the Exchange Rate Pass-Through to Inflation in Tanzania. IMF Working Papers, 1.
  37. 37. Giovanni Olivei,P. (2002). Exchange Rates and Prices. New England Economic Review
  38. 38. John Taylor (2000). ยซLow inflation, pass-through, and the pricing power of firmsยป, European Economic Review, Elsevier, vol. European Economic Review, 2000(7), 1389-1408.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Chatri Abdellatif, Maarouf Abdelouahab, Ragbi Aziz. 2016. "An Empirical Investigation of the Exchange Rate Pass-Through to Prices in Morocco". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 16 (GJMBR Volume 16 Issue 25 (B5)).

More Citation Formats

Download Citation

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
Classification
GJMBR-B Classification JEL Code: P22
E30
Version of record
v1.2

Issue date
July 29, 2016

Language
English
Order Article Reprint
Experience in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

Article Matrices
Total Views: 1.2K
Total Downloads: 88
All Trends

Request Access

Please fill out the form below to request access to this research paper. Your request will be reviewed by the editorial or author team.
X

This is the heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

High-quality academic research articles on global topics and journals.

An Empirical Investigation of the Exchange Rate Pass-Through to Prices in Morocco

Chatri Abdellatif
Chatri Abdellatif
Maarouf Abdelouahab
Maarouf Abdelouahab
Ragbi Aziz
Ragbi Aziz