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

ยง University Med V, Rabat, Morocco

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

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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

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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 Invistigation 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 B5).

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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
September 3, 2016

Language
English
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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
Maarouf Abdelouahab
Ragbi Aziz
Ragbi Aziz