The  Interdisciplinary Research Laboratory in Economics, Finance and Management of Organizations

(IRLEFMO)

Organize:

The 14 and 15 December 2022

The 2^nd Edition of the International Symposium on Research in Macroeconomics, Econometrics and Finance (ISRMEF)

Under the theme:

Independence of Central Banks & Conduct of Monetary Policies:

An empirical questioning of transmission mechanisms

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Argument                                                                                                    [Version en français]

The level of central bank independence, which is a criterion often used to clearly distinguish developed countries from emerging countries, is of paramount importance in the success of any economic policy. The independence of the central bank is an asset that would ensure the credibility of monetary policy, while maintaining the discretion of the objectives targeted, the management autonomy and the structural integrity of this institution vis-à-vis the authorities.

The central bank, which is responsible for the execution of monetary policy (conventional or unconventional, expansionary or restrictive), defined as « all the means and tools implemented by the monetary authority to act on the activity economy through monetary regulation », aims to achieve three main objectives, namely: price stability, full employment and economic growth, as well as external balance. Achieving these objectives requires the correct application of three important tools: bank liquidity, the key rate and the exchange rate.

The principle of central bank independence is based on two dimensions: an economic dimension and a political dimension. Indeed, economic independence reflects autonomy in the choice of targeted objectives and the mechanisms put in place to achieve these objectives; it also includes the ban on financing the budget deficit through monetary creation. As for political independence, it refers to the sovereignty of the central bank vis-à-vis the public authorities. This second type of independence reflects the non-interference of state institutions on the institutional organization of the central bank and the decisions it can take to fully fulfill its mission.

The independence of central banks is a determining factor in assessing their performance in the conduct of their monetary policy, since the interference of the public authorities could only harm the execution of a discretionary and effective monetary policy. In addition, central banks rely on feedback effect models for the conduct of their monetary policy, thanks to which the monetary authorities react systematically to the deviations between the observed values and the targeted values. On the other hand, the forward-looking nature of monetary policy rules requires monetary authorities to predict the evolution of the factors that will influence each targeted objective, in order to put in place, at the appropriate time, the measures necessary for its achievement.

The Central Bank can use several types of monetary policy transmission channels, which have different effects depending on the intended purpose: the interest rate channel, the credit channel, the asset price channel, the expectations channel on inflation and the exchange rate channel. However, these channels are subject to uncertainties and delays due to changing prices and economic conditions; which obligate the monetary authorities to establish by periods, estimates based on inflationary pressures and the economic outlook. Careful analysis via economic models and a good assessment of the economic and monetary situation are essential, before any decision is taken by the monetary authorities.

In Morocco, “the Central Bank defines and conducts monetary policy in complete transparency within the framework of the government’s economic and financial policy. The main objective of the Bank is to maintain price stability. Monetary policy decisions are transmitted to the economy, in particular through their effects on interest rates on the various markets, the expectations of economic agents and the prices of assets, the variation of which affects the overall demand for goods and services, and ultimately inflation.

“Because these effects only materialize after a certain delay, forecasts are of crucial importance in the formulation and decision-making of monetary policy. These are drawn up by the Bank for an eight-quarter horizon on the basis of an integrated analysis and forecasting system, articulated around a central monetary policy model which is itself fed into and supplemented by several models satellites. The central forecasting model is of the semi-structural New-Keynesian type, which is based both on the theoretical foundations underlying the general equilibrium models and on the adjustment to the data characterizing the empirical models”.

Since its creation in 1959, Bank Al-Maghrib initially conducted monetary policy based essentially on direct instruments such as credit supervision and compulsory employment. In a second stage and precisely at the beginning of the 1980s, the Bank moved towards indirect approaches, establishing interventions on the money market and gradually relaxing the regulation of interest rates, then abandoning the quantitative constraints on bank loans. . On the other hand, the reform of the banking law in 1993 strengthened the power of the Bank by enabling it to ensure the stability of the currency and its convertibility, to develop the money market, and to establish from 1995, the liquidity management mechanism through tenders.

The latest statute of Bank Al-Maghrib of July 15, 2019 established the independence of the Bank by attributing price stability to it, while basing itself on the assessment of inflationary pressures, and on the risks surrounding inflation forecasts medium term. To achieve this price stability while containing inflation at a certain level, the Bank generally uses two main instruments, namely the key rate and the compulsory reserve; moreover, it managed to control the weighted average rate on the interbank market and reduce its volatility.

For the conduct of monetary policy within the framework of a more flexible exchange rate regime, the Bank has developed a new central monetary policy model making it possible to produce consistent medium-term projections and incorporates a structural model for simulating medium-term impacts and long-term public policies and structural reforms. In 2016, this framework was deployed and a new forecasting process was put in place. In this context, the Moroccan authorities began in 2018 a reform to widen the fluctuation band of the exchange rate

This transition should strengthen the economy’s capacity to absorb external shocks, support its resilience and serve as a lever for other macroeconomic policies. It should also give more autonomy to monetary policy and when it is at an advanced stage, the Bank will be able to put in place an inflation targeting framework with inflation as the nominal anchor instead the current exchange rate.

Main themes of the symposium

1. The independence of the Central Bank and its structural integrity;
2. The impact of the Central Bank’s monetary policy on economic growth;
3. The modern Central Bank and the criteria guaranteeing its independence;
4. The autonomy of the Central Bank and the credibility of monetary policy;
5. The instruments and ultimate objectives of an effective monetary policy;
6. Central banks of emerging and developed countries;
7. Monetary policies in times of uncertainty: economic, financial, political or health crisis;
8. The Taylor rule and its importance in the effectiveness of monetary policy;
9. The contribution of price stability to economic growth;
10. The impact of monetary policy on the stock market;
11. Monetary creation: sources, mechanisms and consequences on the economy;
12. The economic effects of changes in the money supply;
13. The credibility of the Central Bank as a factor in the effectiveness of monetary policy;
14. Monetary policy transmission channels and their interaction;
15. The role of the Central Bank in assessing inflationary pressures and forecasting medium-term inflation;
16. The conduct of monetary policy and inflation targeting;
17. The normalization of monetary policy through the “forward guidance” instrument;
18. Models for evaluating monetary and economic policies within a country;
19. The autonomy of monetary policy decisions and their propagation on the components of the economy;
20. The importance of forecasting methods on monetary policy decisions;
21. The role of econometric models in the design and evaluation of monetary policy;
22. Monetary Policy Analysis and Forecasting models: MPAF;
23. The dynamics of monetary policy and the cointegration of monetary variables;
24. Macroeconomic modeling for monetary policy assessment.
25. Optimal monetary policy between fixed exchange rate regime and flexible exchange rate regime.

Modalities for submitting communication proposals

Papers should be written according to the following standards:

• The pages will be in A4 format ;
• Top, bottom and side margins of 2.5cm ;
• Font: Times New Roman, size: 12 points, line spacing: 1.5 line and text: justified ;
• Unnumbered first page, will include only the title of the article (Times New Roman, 18, bold), the name(s) of the author(s), their affiliation (Times New Roman, 14, and bold) and the email address for correspondence ;
• Titles following a simple type numbering: 1., 1.1., 1.1.1. ;
• The hierarchy of titles will be limited to 3 levels:
• Titles and subtitles must respect the forms below :
• Level 1: one number, Times New Roman, 12, bold and capital letters ;
• Level 2: two digits, Times New Roman, 12 and bold ;
• Level 3: three digits, Times New Roman and 12 ;
• The pages numbered at the bottom in the middle should not have a header or a footer ;
• Bibliographic references will be listed in alphabetical order by author ;
• References in the text will be cited by putting in parentheses the name of the author and the year of publication ;
• Les éventuels tableaux et figures seront numérotés, avec un le titre en haut et la source en bas ;
• Any annexes will be numbered ;
• Avoid bold or italics, do not underline titles, limit the number of footnotes and give titles to tables and figures ;
• Abstracts will be presented on a minimum of one page and a maximum of two pages ;
• The communication summaries will specify the title of the communication, the authors, the objective of the research, the problem, the research methodology and the main results ;
• The final texts of the communication must contain at least 15 pages, not including the cover page and the appendix pages ;
• Summaries and final texts of communications must be sent by e-mail to the following address : fsjesf.usmba@gmail.com;
• Communications that do not comply with the aforementioned standards will be forwarded to their authors to establish the necessary corrections ;
• The best articles will be published in a special issue of an indexed journal or in a collective work.

Submissions evaluation

The decision of final acceptance of the selected papers will be pronounced by the scientific committee. This committee, made up of professors highly qualified in the theme of the colloquium, will evaluate the content in order to be able to decide on the acceptance or rejection of the communication. He will therefore establish a balance sheet leading to one of the three possible cases, listed below:

• Acceptance of the paper without modification.
• The acceptance of the paper under the condition of modifications (minimal or major).
• The rejection of the paper.

Calendar

• Launch date of the call for papers: September 05, 2022.
• Deadline for receipt of the full text of the communication: October 23, 2021.
• Date of receipt of the opinion of the scientific committee: October 31, 2021.
• Deadline for submission of the final text of the communication: November 13, 2022.
• Dates of the international colloquium: 02 and 03 December 2022.

Scientific Committee of the symposium

ABDELLAOUI Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
ABDOUH Mohammed	Moulay Ismail, Meknès University
AIT OUDRA Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
AKDIM Hamid	FLESS, Sidi Mohamed Ben Abdellah University
AKIOUD Malika	FLESS, Sidi Mohamed Ben Abdellah University
ALAMI Kasri Leila	FLESS, Sidi Mohamed Ben Abdellah University
AZOUGAGH Ahmed	FLESS, Sidi Mohamed Ben Abdellah University
BADIS Abdelaziz	FLESS, Sidi Mohamed Ben Abdellah University
BAGGAR Abdelilah	Moulay Ismail, Meknès University
BELAMHITOU Mahmoud	Abdelmalek Essaadi University
BEN ELHAJ Fouad	FLESS, Sidi Mohamed Ben Abdellah University
BENBOUBKER Mounir	FLESS, Sidi Mohamed Ben Abdellah University
BENCHEKROUN Bouchra	FLESS, Sidi Mohamed Ben Abdellah University
BENMLIH Khalid	FLESS, Sidi Mohamed Ben Abdellah University
BENNIS Karim	FLESS, Sidi Mohamed Ben Abdellah University
BENRAISS Bouchra	FLESS, Sidi Mohamed Ben Abdellah University
BENSBAHOU Aziz	Ibn Tofail University
BENYACOUB Bouchra	FLESS, Sidi Mohamed Ben Abdellah University
BOUARFA Jaouad	Sidi Mohamed Ben Abdellah University
BOUAYAD Abdelrhani	Moulay Ismail University
BOUBRAHIMI Nabil	Ibn Tofail University
BOUNID Samira	Abdelmalek Essaadi University
BOUZEGOU Aziz	Mohammed the First University
CHAKOUR Abdellatif	Mohammed V University
CHARBA Abdelkader	Moulay Ismail University
DEBBAGH Bouchra	FLESS Fès, Sidi Mohamed Ben Abdellah University
DEBBAGH Issam	FLESS Fès, Sidi Mohamed Ben Abdellah University
DIANI Asmae	FLESS Fès, Sidi Mohamed Ben Abdellah University
DYANE Sanae	FLESS Fès, Sidi Mohamed Ben Abdellah University
EDDYLANI Oumhani	FLESS Fès, Sidi Mohamed Ben Abdellah University
EL ABASSI Idriss	Mohammed V University
EL ALAMI KASRI Laila	FLESS Fès, Sidi Mohamed Ben Abdellah University
EL ATTAR Abdelilah	Mohammed Premier University
EL AZZAOUI Aicha	FLESS, Sidi Mohamed Ben Abdellah University
EL HASSANI Hafid	FLESS, Sidi Mohamed Ben Abdellah University
EL HIRI Abderrazak	FLESS, Sidi Mohamed Ben Abdellah University
EL JADAOUI Abdelhakim	Sidi Mohamed Ben Abdellah University
EL KHODARY Mohammed	FLESS, Sidi Mohamed Ben Abdellah University
EL MALLOUKI Lhoussain	FLESS, Sidi Mohamed Ben Abdellah University
EL OUDRI Abdelkader	Mohammed Premier University
EZZAHID Elhadj	Mohammed V University
HAOUDI Amina	FLESS, Sidi Mohamed Ben Abdellah University
HEMMI  Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
HILMI Yassine	Université Chouaib Doukkali, El Jadida
M’HAMDI Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
MOUSSA Abdelkarim	FLESS, Sidi Mohamed Ben Abdellah University
NMILI Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
PHENIQI Youssef	FLESS, Sidi Mohamed Ben Abdellah University
RAFIKI Abdeljabbar	Moulay Ismail University
SAADANI Ghali	FLESS, Sidi Mohamed Ben Abdellah University
SKOURI Abdelhamid	FLESS, Sidi Mohamed Ben Abdellah University
SIDKI Selma	Ibn Tofail University
TRID Sabah	FLESS, Sidi Mohamed Ben Abdellah University

Symposium organizing committee

Général coordinator of the colloquium:

EL HIRI Abderrazak

FLESS, Sidi Mohamed Ben Abdellah University

Symposium coordinators :

BEN ELHAJ Fouad	FLESS, Sidi Mohamed Ben Abdellah University
EL HASSANI Hafid	FLESS, Sidi Mohamed Ben Abdellah University
El-Khodary Mohamed	FLESS, Sidi Mohamed Ben Abdellah University

Committee members :

ABDELLAOUI Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
AIT OUDRA Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
AKDIM Hamid	FLESS, Sidi Mohamed Ben Abdellah University
AKIOUD Malika	FLESS, Sidi Mohamed Ben Abdellah University
ALAMI Kasri Laila	FLESS, Sidi Mohamed Ben Abdellah University
AZOUGAGH Ahmed	FLESS, Sidi Mohamed Ben Abdellah University
BELHAJ Ismail	FLESS, Sidi Mohamed Ben Abdellah University
BEN ELHAJ Fouad	FLESS, Sidi Mohamed Ben Abdellah University
BENBOUBKER Mounir	FLESS, Sidi Mohamed Ben Abdellah University
BENNIS NECHBA Zineb	FLESS, Sidi Mohamed Ben Abdellah University
BENYACOUB Bouchra	FLESS, Sidi Mohamed Ben Abdellah University
DEBBAGH Bouchra	FLESS, Sidi Mohamed Ben Abdellah University
DEBBAGH Issam	FLESS, Sidi Mohamed Ben Abdellah University
DIANI Asmae	FLESS, Sidi Mohamed Ben Abdellah University
DYANE Sanae	FLESS, Sidi Mohamed Ben Abdellah University
EDDELANI Oumhani	FLESS, Sidi Mohamed Ben Abdellah University
ED-DAHMOUNY Hicham	FLESS, Sidi Mohamed Ben Abdellah University
EJJANOUI Fouzia	FLESS, Sidi Mohamed Ben Abdellah University
EL ALAMI KASRI Laila	FLESS, Sidi Mohamed Ben Abdellah University
EL HASSANI Hafid	FLESS, Sidi Mohamed Ben Abdellah University
EL KHODARY Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
EL MAHI Toufik	Sidi Mohamed Ben Abdellah University
HABIBY Salwa	FLESS, Sidi Mohamed Ben Abdellah University
HAOUDI Amina	FLESS, Sidi Mohamed Ben Abdellah University
JELLOULI Tarik	FLESS, Sidi Mohamed Ben Abdellah University
KHASSAL Hicham	FLESS, Sidi Mohamed Ben Abdellah University
LARIF Mohammed	FLESS, Sidi Mohamed Ben Abdellah University
LAGHRIM. Hakima	FLESS, Sidi Mohamed Ben Abdellah University
LKHOUMSSI Samiha	FLESS, Sidi Mohamed Ben Abdellah University
M’HAMDI Mohamed	FLESS, Sidi Mohamed Ben Abdellah University
PHENIQI Youssef	FLESS, Sidi Mohamed Ben Abdellah University
TOUATE Samira	FLESS, Sidi Mohamed Ben Abdellah University
TRID Sabah	FLESS, Sidi Mohamed Ben Abdellah University
ZERYOUH Assia	FLESS, Sidi Mohamed Ben Abdellah University

Contact

To send the full texts or request all the information concerning the symposium, please contact us at the following email address:

cirmef.fsjesf.usmba@gmail.com