An evaluation of the effectiveness of an inflation targeting in Algeria

Gadiri Meryem , Mekidiche Mohammed

  • Meryem Gadiri University Center of Maghnia, Algeria
  • Mohammed Mekidiche University Center of Maghnia, Algeria
Keywords: Monetary Policy, Inflation Targeting, TaylorRule, ARDL model, Algeria

Abstract

The aim of this study is to evaluate the effectiveness of monetary policy to target inflation in Algeria during the period 1990-2017 through econometrics as defined by economic theories, in order to achieve this objective we used ARDL model Where it was applied Taylor’s original rule to Algerian monetary policy, based on the real interest rate,the inflation gap, and output gap. The study concluded that the reactions of monetary policy in Algeria are inconsistent to achieve stability in the general level of prices ,which do not correspond to the application of Taylor rule ,and that the modern approach to monetary policy in Algeria  cannot be considered targeting inflation.

Published
2022-10-09
How to Cite
Gadiri M., & Mekidiche M. (2022). An evaluation of the effectiveness of an inflation targeting in Algeria . Journal of Economic Growth and Entrepreneurship , 5(3), 118-135. https://doi.org/10.5281/10.5281/zenodo.4482060