Volume 4, Issue 1, March 2019, Page: 15-22
The Impact of Monetary Policy on Algerian Economic Activity
Radia Benziane, Faculty of Economics, Business and Management Sciences, University of Algiers, Algiers, Algeria
Received: Feb. 18, 2019;       Accepted: Mar. 20, 2019;       Published: May 6, 2019
DOI: 10.11648/j.jbed.20190401.13      View  84      Downloads  35
Abstract
This study investigated the role of monetary policy in financing economic activity in Algeria during the period 1990-2017 using quarterly data. The application of the VAR model has shown the negligible effect of credit and interest rate on gross domestic product. On the other hand, it appears a more significant positive effect of the real money supply. The modest contribution of the financial system to economic growth could be attributed to the excess of liquidity and the weak development of the financial system, the Algerian capital markets are nascent, the lengthy administrative procedures and the lack of competition in the banking sector.
Keywords
Monetary Policy, Economic Growth, Credits, Interest Rate
To cite this article
Radia Benziane, The Impact of Monetary Policy on Algerian Economic Activity, Journal of Business and Economic Development. Vol. 4, No. 1, 2019, pp. 15-22. doi: 10.11648/j.jbed.20190401.13
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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