Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib)

Volume: 4 Number: 4 December 1, 2014
  • Nicolas Moumni
  • Benaissa Nahhal
EN

Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib)

Abstract

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

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Nicolas Moumni This is me

Benaissa Nahhal This is me

Publication Date

December 1, 2014

Submission Date

December 1, 2014

Acceptance Date

-

Published in Issue

Year 2014 Volume: 4 Number: 4

APA
Moumni, N., & Nahhal, B. (2014). 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, 4(4), 801-818. https://izlik.org/JA86BW45JU
AMA
1.Moumni N, Nahhal B. Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib). IJEFI. 2014;4(4):801-818. https://izlik.org/JA86BW45JU
Chicago
Moumni, Nicolas, and Benaissa Nahhal. 2014. “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 4 (4): 801-18. https://izlik.org/JA86BW45JU.
EndNote
Moumni N, Nahhal B (December 1, 2014) 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 4 4 801–818.
IEEE
[1]N. Moumni and B. Nahhal, “Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib)”, IJEFI, vol. 4, no. 4, pp. 801–818, Dec. 2014, [Online]. Available: https://izlik.org/JA86BW45JU
ISNAD
Moumni, Nicolas - Nahhal, Benaissa. “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 4/4 (December 1, 2014): 801-818. https://izlik.org/JA86BW45JU.
JAMA
1.Moumni N, Nahhal B. Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib). IJEFI. 2014;4:801–818.
MLA
Moumni, Nicolas, and 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, vol. 4, no. 4, Dec. 2014, pp. 801-18, https://izlik.org/JA86BW45JU.
Vancouver
1.Nicolas Moumni, Benaissa Nahhal. Impact of Liquidity Level on the Monetary Policy Transmission Effectiveness of the Moroccan Central Bank (Bank Al Maghrib). IJEFI [Internet]. 2014 Dec. 1;4(4):801-18. Available from: https://izlik.org/JA86BW45JU