vol 18 no 1,2018

Dynamic and Causal Relationship Between the Monetary Mass, the Exchange Rate and Inflation in Algeria During (1990-2014) Soundous Chaibainou

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Dynamic and Causal Relationship Between the Monetary Mass, the Exchange Rate and Inflation in Algeria During (1990-2014)

Soundous Chaibainou

Dr. Fouzi Choug

Dr. Said Brika

Economic Departement

Management Departement

Commercials Department

Oum Elbuaghi University- Algeria                  Ouargla Univirsity -Algeria

Oum Elbuaghi University- Algeria

fouzichoug@yahoo.frThis email address is being protected from spambots. You need JavaScript enabled to view it.                        soundouschaibainou@gmail.comThis email address is being protected from spambots. You need JavaScript enabled to view it.

saidbrika@yahoo.frThis email address is being protected from spambots. You need JavaScript enabled to view it.

Received 20/11/2017                                                   Accepted 07/06/2018

https://doi.org/10.12816/0054736

Abstract:

The importance of studying the dynamic relationship between money supply, exchange rate and inflation has a great impact on the macroeconomic balance of any country. The study is tackled in two ways: The theoretical aspect of analyzing the evolution of these variables in Algeria during the period 1990-2014.This is crucial to the Algerian economy, during which it known as a transition period is marked by structural reforms. an empirical study is also conducted in which we found that inflation in Algeria is affected by changes in money supply and exchange rate, through the results of the estimation of the long-term equilibrium relationship, and the error correction model, based on the two-stage Engel-Granger method and outputs of (EVIEWS8)software.

Keywords: exchange rate, money supply, inflation, Causality, joint integration.

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