Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib)
In the context of international financial crisis, this paper aims to analyze the impact of the liquidity level on the monetary policy transmission effectiveness of the Moroccan Central Bank (Bank Al Maghrib, BAM). After a long period of liquidity excess, the Moroccan banking system through, since 2...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2014-08-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/892 |
| _version_ | 1797908396087705600 |
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| author | Nicolas Moumni Benaissa Nahhal |
| author_facet | Nicolas Moumni Benaissa Nahhal |
| author_sort | Nicolas Moumni |
| collection | DOAJ |
| description |
In the context of international financial crisis, this paper aims to analyze the impact of the liquidity level on the monetary policy transmission effectiveness of the Moroccan Central Bank (Bank Al Maghrib, BAM). After a long period of liquidity excess, the Moroccan banking system through, since 2007, a liquidity shortage that forces BAM to inject a regular and massive quantity of liquidity. Thus, to evaluate the influence of liquidity level on the monetary policy transmission effectiveness of Bank Al Maghrib, we apply a VAR modeling over the period 1998-2012, by distinguishing the period of liquidity excess and liquidity shortage and using two types of liquidity indicators. Our results show that in an excess liquidity period the monetary policy transmission would be less efficient, especially in the longer term. Instead, a liquidity shortage situation makes it more effective.
Keywords: Monetary Policy Transmission; Liquidity; VAR modeling.
JEL Classifications: C5; E5
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| first_indexed | 2024-04-10T10:52:03Z |
| format | Article |
| id | doaj.art-494dba32e23644ff97362c3d3f4fd464 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:52:03Z |
| publishDate | 2014-08-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-494dba32e23644ff97362c3d3f4fd4642023-02-15T16:20:07ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382014-08-0144Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib)Nicolas Moumni0Benaissa Nahhal1Jules Verne University of Amiens, France (UPJV, CRIISEA).Jules Verne University of Amiens, France (UPJV, CRIISEA). and Mohamed V University, AGDAL, in Rabat, Morocco. In the context of international financial crisis, this paper aims to analyze the impact of the liquidity level on the monetary policy transmission effectiveness of the Moroccan Central Bank (Bank Al Maghrib, BAM). After a long period of liquidity excess, the Moroccan banking system through, since 2007, a liquidity shortage that forces BAM to inject a regular and massive quantity of liquidity. Thus, to evaluate the influence of liquidity level on the monetary policy transmission effectiveness of Bank Al Maghrib, we apply a VAR modeling over the period 1998-2012, by distinguishing the period of liquidity excess and liquidity shortage and using two types of liquidity indicators. Our results show that in an excess liquidity period the monetary policy transmission would be less efficient, especially in the longer term. Instead, a liquidity shortage situation makes it more effective. Keywords: Monetary Policy Transmission; Liquidity; VAR modeling. JEL Classifications: C5; E5 https://econjournals.com/index.php/ijefi/article/view/892 |
| spellingShingle | Nicolas Moumni Benaissa Nahhal Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib) International Journal of Economics and Financial Issues |
| title | Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib) |
| title_full | Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib) |
| title_fullStr | Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib) |
| title_full_unstemmed | Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib) |
| title_short | Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib) |
| title_sort | impact of liquidity level on the monetary policy transmission effectiveness of the moroccan central bank bank al maghrib |
| url | https://econjournals.com/index.php/ijefi/article/view/892 |
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