Measuring the impact of the general budget deficit on inflation rates in Algeria for the period (1980-2020)

Abdelkrim Elmoumen

Abstract

The study aims to describe, analyze and measure the impact of the general budget deficit on inflation rates in Algeria during the period (1980-2020), through the application of the VAR autoregressive ray model, the study concluded that there is a direct relationship between the two variables, indicating that the rise in the general budget deficit contributes to raising the inflation rates, and the test of causality for Granger indicated that there is a one-way causality that applies from general budget deficit towards the inflation rate, the analysis of the response and variance countries also showed that there is a positive significant effect of the general budget deficit on the deficit of the inflation rate in the short term, and there is no effect in the long term