The Role of Economic Policy in Morocco’s Economic Recovery

This study investigates Morocco's policy mix to mitigate the COVID-19 crisis's adverse effects. Evaluating the economic impacts of these measures is crucial for understanding the support needed in a constrained fiscal environment. We employ a Dynamic Stochastic General Equilibrium (DSGE) model with Bayesian estimation techniques, using ten quarterly datasets from Q1 2000 to Q4 2019, covering key economic indicators like real GDP, private consumption, public investment, interest rates, inflation, tax revenues, and public debt.The study assesses the effects of critical interventions during the pandemic, including a public investment fund, public transfers, and interest rate reductions. By analyzing these factors, we aim to provide insights for future monetary and fiscal policies, particularly in contexts of high public debt. The findings will enhance understanding of effective policy measures for promoting economic recovery and resilience in crises.