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Relevance of a Taylor-type rule in the active monetary policy of Bank Al-Maghrib ?

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  • Nicolas Moumni
  • Salma DASSER

Abstract

Like the central banks of developed countries, the central bank of Morocco (Bank Al-Maghrib, BAM) has since the 1990s, upgraded instruments and practice of monetary policy. The purpose of this study is to examine the implementation by the institution of a Taylor-type rule in its active monetary policy via interest rates.we conducted the estimation, by the generalized moments method (GMM) (justified for its technical qualities), of backward-looking and forward-looking Taylor rule versions, simple and augmented by the monetary aggregate M1, with and without smoothing, over the period 1995-2008. Our results do not support the use by the central bank of Morocco such a rule.

Suggested Citation

  • Nicolas Moumni & Salma DASSER, 2011. "Relevance of a Taylor-type rule in the active monetary policy of Bank Al-Maghrib ?," EcoMod2011 2766, EcoMod.
    • Handle: RePEc:ekd:002625:2766
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    References listed on IDEAS

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