IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-02432744.html
   My bibliography  Save this paper

Developing Economies Optimal Exchange Rate Regime: to Float or to Peg for Morocco?

Author

Listed:
  • Ayoub Rabhi

    (CERAPE - Laboratoire de Coordination des Études et des Recherches en Analyse et Prévisions Économiques (CERAPE) - FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès)

  • Amina Haoudi

    (CERAPE - Laboratoire de Coordination des Études et des Recherches en Analyse et Prévisions Économiques (CERAPE) - FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès)

Abstract

One of the most important and recent issues for the last decade in international finance, is the choice of an optimal Exchange Rate Regime for emerging and developing countries, because it stands as the major factor in the drive for economic stability according to different studies. In this context, encouraged recently by the IMF to introduce a greater flexibility to its Exchange Rate Regime, Morocco as a small economy has already started working on the process to establish the new reform in its Exchange Rate Regime, so as pledged, it can reinforce its integration in the international financial system in order to achieve different targets of the economy. However, the transition from the actual Regime to a more flexible one is not a simple equation; that's why we intended in our paper to answer different questions related to the fundamentals of the economy through a scrupulous analysis that helps have a more clear vision on whether to float or peg the Moroccan Exchange Rate Regime. Our study is based on a quantitative comparative benchmark between Morocco and other emerging countries in order to evaluate the decision made by the Moroccan Central Bank.

Suggested Citation

  • Ayoub Rabhi & Amina Haoudi, 2017. "Developing Economies Optimal Exchange Rate Regime: to Float or to Peg for Morocco?," Post-Print hal-02432744, HAL.
    • Handle: RePEc:hal:journl:hal-02432744
    DOI: 10.9790/5933-0802043648
    Note: View the original document on HAL open archive server: https://hal.science/hal-02432744
    as

    Download full text from publisher

    File URL: https://hal.science/hal-02432744/document
    Download Restriction: no
    File URL: https://libkey.io/10.9790/5933-0802043648?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael Bleaney & Mo Tian & Lin Yin, 2016. "Global Trends in the Choice of Exchange Rate Regime," Open Economies Review, Springer, vol. 27(1), pages 71-85, February.
    2. Carmen M. Reinhart & Kenneth S. Rogoff & Miguel A. Savastano, 2003. "Debt Intolerance," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(1), pages 1-74.
    3. Mr. Aasim M. Husain & Mr. Ashoka Mody & Nienke Oomes & Mr. Robin Brooks & Mr. Kenneth Rogoff, 2003. "Evolution and Performance of Exchange Rate Regimes," IMF Working Papers 2003/243, International Monetary Fund.
    4. Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 1-48.
    5. Hausmann, Ricardo & Panizza, Ugo & Stein, Ernesto, 2001. "Why do countries float the way they float?," Journal of Development Economics, Elsevier, vol. 66(2), pages 387-414, December.
    6. Guillermo A. Calvo & Carmen M. Reinhart, 2002. "Fear of Floating," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 379-408.
    7. Alexis Cruz-Rodriguez, 2013. "Choosing and Assessing Exchange Rate Regimes: a Survey of the Literature," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 28(2), pages 37-61, October.
    8. Mr. Paolo Mauro & Miss Grace Juhn, 2002. "Long-Run Determinants of Exchange Rate Regimes: A Simple Sensitivity Analysis," IMF Working Papers 2002/104, International Monetary Fund.
    9. Klein, Michael W. & Shambaugh, Jay C., 2012. "Exchange Rate Regimes in the Modern Era," MIT Press Books, The MIT Press, edition 1, volume 1, number 026251799x, December.
    10. Imad A. Moosa, 2005. "Exchange Rate Regimes," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-50442-4.
    11. Mr. Andrew Berg & Mr. Paolo Mauro & Mr. Michael Mussa & Mr. Alexander K. Swoboda & Mr. Esteban Jadresic & Mr. Paul R Masson, 2000. "Exchange Rate Regimes in an Increasingly Integrated World Economy," IMF Occasional Papers 2000/011, International Monetary Fund.
    12. repec:eco:journ1:2014-03-06 is not listed on IDEAS
    13. Aasim M. Husain, 2006. "Choosing the Right Exchange Rate Regime for Pakistan," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 2, pages 91-111.
    14. Esmak Hassan & Firano Zakaria, 2014. "Exchange Regime Choice with Multinomial Panel Data: Case of the North Africa Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 4(4), pages 745-757.
    15. Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(30), pages 08-45.
    16. Terra, Cristina, 2015. "Principles of International Finance and Open Economy Macroeconomics," Elsevier Monographs, Elsevier, edition 1, number 9780128022979.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhamad, Goran M. & Heshmati, Almas & Khayyat, Nabaz T., 2021. "How to reduce the degree of dependency on natural resources?," Resources Policy, Elsevier, vol. 72(C).
    2. Eman Elish, 2019. "The Determinants of Optimal Exchange Rate Regimes in High and Low Oil-Producing Countries," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 15(2), pages 97-120, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mr. Aasim M. Husain, 2006. "To Peg or Not to Peg: A Template for Assessing the Nobler," IMF Working Papers 2006/054, International Monetary Fund.
    2. Muhammad Naveed TAHIR & Faran ALI & Dawood MAMOON, 2016. "Appropriate Exchange Rate Regime for Economic Structure of Pakistan," Turkish Economic Review, KSP Journals, vol. 3(4), pages 629-641, December.
    3. Levy Yeyati, Eduardo & Sturzenegger, Federico & Reggio, Iliana, 2010. "On the endogeneity of exchange rate regimes," European Economic Review, Elsevier, vol. 54(5), pages 659-677, July.
    4. Christoph Fischer, 2011. "Currency blocs in the 21st century," Globalization Institute Working Papers 87, Federal Reserve Bank of Dallas.
    5. Rita Fradique Lourenço, 2004. "Exchange Rate Regimes: A Global Picture Since the Emerging Market Crises in the Mid 1990s," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    6. Christoph Fischer, 2011. "Currency blocs in the 21st century," Globalization Institute Working Papers 87, Federal Reserve Bank of Dallas.
    7. Aghion, Philippe & Bacchetta, Philippe & Rancière, Romain & Rogoff, Kenneth, 2009. "Exchange rate volatility and productivity growth: The role of financial development," Journal of Monetary Economics, Elsevier, vol. 56(4), pages 494-513, May.
    8. repec:zbw:bofitp:2012_024 is not listed on IDEAS
    9. Meissner, Christopher M. & Oomes, Nienke, 2009. "Why do countries peg the way they peg? The determinants of anchor currency choice," Journal of International Money and Finance, Elsevier, vol. 28(3), pages 522-547, April.
    10. Berg, Andrew & Borensztein, Eduardo & Mauro, Paolo, 2002. "An evaluation of monetary regime options for Latin America," The North American Journal of Economics and Finance, Elsevier, vol. 13(3), pages 213-235, December.
    11. Jean-Pierre Allegret & Mohamed Ayadi & Leila Haouaoui Khouni, 2011. "Le choix d'un régime de change dans les pays émergents et en développement peut-il être optimal en dehors des solutions bipolaires ?," Revue économique, Presses de Sciences-Po, vol. 62(2), pages 133-162.
    12. Piersanti, Giovanni, 2012. "The Macroeconomic Theory of Exchange Rate Crises," OUP Catalogue, Oxford University Press, number 9780199653126.
    13. Jean-Pierre Allegret & Mohamed Ayadi & Leila Haouaoui Khouni, 2005. "Un modèle de choix de régime de change : Aspects théoriques et analyse empirique," Post-Print halshs-00258292, HAL.
    14. Frommel, Michael & Schobert, Franziska, 2006. "Exchange rate regimes in Central and East European countries: Deeds vs. words," Journal of Comparative Economics, Elsevier, vol. 34(3), pages 467-483, September.
    15. Mr. Aasim M. Husain & Mr. Ashoka Mody & Nienke Oomes & Mr. Robin Brooks & Mr. Kenneth Rogoff, 2003. "Evolution and Performance of Exchange Rate Regimes," IMF Working Papers 2003/243, International Monetary Fund.
    16. Alexis Cruz-Rodriguez, 2013. "Choosing and Assessing Exchange Rate Regimes: a Survey of the Literature," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 28(2), pages 37-61, October.
    17. Jong-Wha Lee & Kwanho Shin, 2010. "Exchange Rate Regimes and Economic Linkages," International Economic Journal, Taylor & Francis Journals, vol. 24(1), pages 1-23.
    18. Cobham, David, 2022. "Monetary policy frameworks since Bretton Woods, across the world and its regions," MPRA Paper 114466, University Library of Munich, Germany.
    19. Jeffrey A. Frankel & Shang-Jin Wei, 2004. "Managing Macroeconomic Crises," NBER Working Papers 10907, National Bureau of Economic Research, Inc.
    20. Gunther Schnabl, 2004. "De jure versus de facto Exchange Rate Stabilization in Central and Eastern Europe," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 59(02), pages 171-190, June.
    21. Aasim M. Husain, 2006. "Choosing the Right Exchange Rate Regime for Pakistan," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 2, pages 91-111.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-02432744. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.