The Impact of Monetary Policy on Economic Development in Algeria

An Econometric Study for the Period (1990-2022)

Abstract

This study aims to measure and analyse the effect of monetary policy on economic development in Algeria during the period (1990-2022), has been using Autoregressive Distributed Lag Model (ARDL) because of this form of advantages is the suitability for small samples and data of stationary in the first-difference or the level or a combination of the two.

In addition to that, this study arrives to a long-term balanced relationship between the study variables, as the positive relationship and significant at the level of 1%between the money supply and the economic development index, while the relationship was negative and significant at the level of 1%with the exchange rate, real interest rate and Inflation rate. And as expected, the error correction factor was negative and significant, which indicates that the estimated model includes a mechanism for returning to balance again.

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Article source: https://www.asjp.cerist.dz/en/article/254508