Impact of Non-Conventional Monetary Policies of Advanced Economies on the Stability of Financial Markets in Morocco

Saou Badr- Eddine, Badr Machraf

The global financial crisis of 2007–2008 led major central banks to adopt unconventional monetary policies, whose effects spread internationally due to strong financial integration. This study examines the impact of these policies on the stability of the Moroccan financial market by analyzing the effect of a quantitative easing shock by the U.S. Federal Reserve— measured by the expansion of its balance sheet—on the MASI stock market index. Estimates based on a VAR (1) model show that the Federal Reserve’s asset purchase policies have a negative and statistically significant short-term effect on MASI returns, but that this impact gradually fades and disappears in the medium term. These findings highlight the sensitivity of the Moroccan financial market to international monetary conditions and underscore the key role of global financial channels in the transmission of monetary policies from major economies