Exchange rate pass-through to inflation in Morocco: a structural VAR approach

Both theoretical and empirical literature emphasize the influence of exchange rate shocks on the domestic prices of imported goods. In this context, this study aims to investigate the fundamental connection between exchange rate fluctuations and domestic price levels, a phenomenon referred to as Exchange Rate Pass-Through (ERPT). The primary objective is to analyze the transmission of exchange rate variations across the economy and their impact on domestic prices, thereby offering valuable insights into the mechanisms of pass-through and their relevance in the Moroccan context.