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This present aims to treat the causal link between exchange rate fluctuations and the economy, based on the case of Morocco, this problem of volatility of rates has been imposed for a long time and has been accentuated by the implementation of the new reform of the exchange rate system.
Starting from the notion of the exchange rate system, this study explores the different phases through which the exchange rate regime has shifted, the shift from fixity to flexibility, and the impact of this shift on the country's overall monetary policy.
Moreover, in this document, I aim to treat the opening of the Moroccan economy to the international and the shocks that can exist there, with the necessary adjustments.
Ultimately, this work infers that Dirham’s value has many other key determinants besides the trade balance imbalance and that the flexibilization of the Dirham is a reform that will allow the Kingdom to cope best, to unexpected shocks, comparing it with the old system that was adopted. A conclusion with the prospects of development of this project seems interesting.

Exchange rate - Flexibility of the regime - Shocks - Volatility - International opening - Morocco --- Sciences économiques & de gestion > Finance

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This paper investigates the effects of fixed versus flexible exchange rates on firms’ location choices and on countries’ specialization patterns. In a two-country, two-differentiated-goods monetary model, demand, supply, and monetary (as well as exchange rate) shocks arise after wages are set and prices are optimally chosen. The paper finds that countries are more specialized under flexible than fixed rates, and that the pattern of specialization is not uniquely defined by trade models but depends also on the exchange rate regime. The adoption of fixed exchange rates endogenously increases the desirability of this currency area by reducing the shock asymmetry. These results also shed light on the effects of exchange rate variability on trade.

Foreign Exchange --- Taxation --- Taxation, Subsidies, and Revenue: General --- Currency --- Foreign exchange --- Public finance & taxation --- Exchange rate arrangements --- Exchange rates --- Conventional peg --- Exchange rate flexibility --- Tax incentives

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A widely held nostrum is that countries should exit heavily managed exchange rate regimes when the going is good, rather than when the exchange rate is under pressure to depreciate. Have countries followed this advice in practice? And, if so, how good has the going been? We find that in the past 25 years or so, almost all exits to more flexible regimes were followed by a depreciation of the exchange rate, and that exits were about evenly divided between disorderly and orderly cases. A logit econometric model, indicates that the general circumstances of orderly and disorderly exits have been broadly similar: an overvalued real exchange rate, falling reserves, a difficult fiscal position, and high world interest rates. Wellestablished pegs were less likely to end.

Electronic books. -- local. --- Foreign exchange administration. --- Foreign exchange rates. --- Foreign Exchange --- Currency --- Foreign exchange --- Exchange rate arrangements --- Exchange rates --- Real exchange rates --- Exchange rate flexibility --- Managed exchange rates --- United States

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Using countries' de facto exchange rate regimes during 1985-2002, this paper analyzes the determinants of exits from pegged regimes, where exits involve shifts to more or less flexible regimes, or adjustments within the existing regime. Distinguishing episodes characterized by "exchange market pressure" from orderly exits, the estimated probabilities of alternative exit episodes indicate that crises are preceded by a deterioration of economic conditions. In contrast, orderly exits to less flexible regimes are preceded by long regime duration, a decline in financial liabilities of the banking system, and an increase in official reserves. Exits to more flexible regimes are associated with both emerging market and other developing countries, and an increase in trade openness and government borrowing from banks. The results are robust to alternative sensitivity analyses and have reasonable predictive performance, confirming that economic and financial conditions and regime duration play important roles in determining the future course of exchange rate regimes.

Finance: General --- Foreign Exchange --- International Financial Markets --- Currency --- Foreign exchange --- Finance --- Exchange rate arrangements --- Exchange rate flexibility --- Conventional peg --- Crawling peg --- Currency markets --- Financial markets --- Foreign exchange market --- Israel

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This paper reviews the experiences of a number of European countries in coping with capital inflows. It describes the nature of the inflows, their implications for macroeconomic and financial stability, and the policy responses used to cope with them. The experiences suggest that as countries become more integrated with international financial markets, there is little room to regulate capital flows effectively. The most effective ways to deal with capital inflows would be to deepen the financial markets, strengthen financial system supervision and regulation, where needed, and improve the capacity to design and implement sound macroeconomic and financial sector policies. These actions will help increase the absorption capacity and resilience of the economies and financial systems to the risks associated with the inflows.

Exports and Imports --- Foreign Exchange --- Money and Monetary Policy --- International Investment --- Long-term Capital Movements --- Monetary Policy --- Currency --- Foreign exchange --- International economics --- Monetary economics --- Capital inflows --- Exchange rate flexibility --- Exchange rates --- Inflation targeting --- Capital movements --- Monetary policy --- Czech Republic