Monetary transmission mechanisms in Morocco and Tunisia

الملخص EN

Understanding the transmission mechanism of monetary policy, especially the time lag involved between a policy change and its impact on inflation and output, constitutes a prerequisite to the implementation of any sound monetary strategy.

The uncertainties that might surround the transmission mechanisms weaken the effectiveness of the monetary policy.

Despite its strategic importance, this issue has received very little interest in MENA countries in general and in Morocco and Tunisia in particular.

This paper seeks to analyze, identify and compare the monetary transmission mechanisms through which the monetary policy shocks propagate in Morocco and Tunisia.

The channels that have been considered in this study are the following: the exchange rate channel, the assets price channel, the traditional monetary channel, and the lending channel.

The main empirical results of this paper are the following.

First, neither the exchange rate channel nor the asset price channel is operative.

Second, the lending channel is operative in Tunisia.

More specifically, our results indicate that the lending channel is dominant in the sense that it is stronger than the traditional interest channel.

Third, the lending channel is also operative in Morocco, but its effects are less pronounced than in Tunisia.