Capital Account Liberalization in Morocco: Is it Compatible with Fixed or Flexible Exchange Rate Regime?
| Autor: | Brahim Maouhoub, Elhadj Ezzahid |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Exchange rate regime flexibilization Strategy and Management Monetary economics Capital account liberalization Real exchange rate Economic parameters Exchange rate and game theory 0502 economics and business Economics ddc:330 F32 exchange rate regime flexibilization 050207 economics Simulation based F31 Government real exchange rate 050208 finance HG1501-3550 05 social sciences compensation fund Economic agents capital account liberalization Exchange-rate regime Banking Capital (economics) f32 General Economics Econometrics and Finance f31 Finance |
| Zdroj: | Journal of Central Banking Theory and Practice, Vol 9, Iss 1, Pp 185-218 (2020) |
| Popis: | This paper examines the opportunity of exchange rate regime flexibilization in Morocco under the policy of capital account liberalization. Basing on our findings in Ezzahid and Maouhoub (2014), we develop a new theoretical game model with four economic agents, namely: monetary authorities, government, foreign firms and domestic firms. We explore the optimal exchange rate regime for Morocco under new conditions such as the presence of a compensation fund effect, restrictions on capital outflows, etc. Starting with a first simulation based on current economic parameters, the results show that losses under a flexible exchange rate regime are lower than losses under a fixed exchange rate regime. Varying different parameters allow discovering the ‘appropriate level’ from which monetary authorities should move toward the flexible exchange rate. |
| Databáze: | OpenAIRE |
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