MONEY DEMAND STABILITY IN MOROCCO AND THE EFFECTIVENESS OF MONETARY POLICY: AN ECONOMETRIC STUDY WITH THE CO-INTEGRATED VAR MODEL

Authors

  • Hafid EL HASSANI Sidi Mohamed Ben Abdellah University
  • Idriss OUALI Sidi Mohamed Ben Abdellah University

Keywords:

Monetary policy, demand for money, inflation, cointegrated VAR, Stationarity test

Abstract

The main objective of this paper is to study the stability of the demand for money in Morocco and its implication on the conduct of monetary policy. Our data were extracted from the World Bank and the High Commission for Planning database and consist of annual data covering the period from 1990 to 2018. We adopt an approach based on the concept of cointegration. After studying the stationarity of the variables, the VAR econometric specification suitable for our study is that of the cointegrated VAR model.

In light of the results of the empirical study on the Moroccan case, we can conclude that the currency demand function in Morocco is stable over the period studied, and the demand for M3 currency in Morocco is predictable and can be used for the effective implementation of monetary policy.

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Published

2022-12-30

How to Cite

EL HASSANI , H., & OUALI , I. (2022). MONEY DEMAND STABILITY IN MOROCCO AND THE EFFECTIVENESS OF MONETARY POLICY: AN ECONOMETRIC STUDY WITH THE CO-INTEGRATED VAR MODEL. Revue Du contrôle, De La Comptabilité Et De l’audit , 6(4). Retrieved from https://revuecca.com/index.php/home/article/view/857

Issue

Vol. 6 No. 4 (2022)

Section

Articles

License

Copyright (c) 2022 Hafid EL HASSANI , Idriss OUALI

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.