Credit Market in Morocco: A Disequilibrium Approach

20 Pages Posted: 19 May 2009

See all articles by Nada Oulidi

Nada Oulidi

International Monetary Fund (IMF)

Laurence Allain

International Monetary Fund (IMF)

Date Written: March 2009

Abstract

In this paper we use a disequilibrium framework common in the "credit crunch" literature, first to examine whether the slow credit growth in Morocco during the rapid expansion of liquidity in the first half of the decade can be attributed to credit rationing, and second to investigate the role of asset price increases in the recent acceleration of credit growth. Our results do not support the credit rationing hypothesis in the first half of the decade. They do however, show that the recent increase in real estate prices stimulated credit supply and demand, with a stronger effect on the latter.

Keywords: Credit expansion, Morocco, Asset prices, Real estate prices, Credit demand, Credit controls, Economic models

Suggested Citation

Oulidi, Nada and Allain, Laurence, Credit Market in Morocco: A Disequilibrium Approach (March 2009). Available at SSRN: https://ssrn.com/abstract=1403765 or http://dx.doi.org/10.2139/ssrn.1403765

Nada Oulidi (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Laurence Allain

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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