No. 3 / 2026 — Autumn

Abstract. In this paper a general equilibrium model was developed to simulate the impact of unconventional measures on macroeconomic and financial conditions in Morocco. The particularity of this model is that it includes most of the nominal and real rigidities, financial frictions, based essentially on BGG model (1999, 2001). The model also includes the possibility that the monetary authorities intervene directly in the balance sheets of commercial banks to financing a part of their assets (Gertler et al. (2011)). Through the inclusion of interventions by the central bank, a comparison was made. This is to compare two macro-financial environments. The first considers the absence of a proactive policy of the monetary authorities, while the second considers a passive situation where the central bank is neutral and only uses its key interest rate following a standard Taylor rule (financial stability function). The simulation results clearly show that monetary policy actions at the balance sheets of commercial banks have had a positive effect on macroeconomic and financial conditions. Thus, the use of balance sheet policy helped initiate the economic recession and reduce its duration and to give more impetus to the economic recovery. We conclude that the absence of such interventions, the banking sector and key macroeconomic indicators, including bank lending and economic growth, reportedly accused of a serious problem to threaten macroeconomic and financial stability.