IMPACT D’UNE POLITIQUE MONÉTAIRE EXPANSIONNISTE SUR L’INFLATION EN ALGÉRIE

Abstract

The author proposes to study the effect of an increase in money supply on inflation and growth in Algeria, based on data 2007:Q1-2016:Q4, by means of impulse response functions and decomposition of the variance of the VAR / VECM model. The impact of the monetary shock, according to our results, seems to be reflected much more in inflation than in economic growth according to the Keynesian assertion and empirical literature.