CIBLAGE D’INFLATION ET CONDUITE DE LA POLITIQUE MONETAIRE EN ALGERIE

Abstract

Inflation targeting has been the most important development in monetary policy issue during the last twenty-five years. The primary ultimate objective of monetary policy under inflation targeting strategy is the controlling inflation at low levels. This fact implies an explicit institutional commitment to support this goal. The Central Bank independence is a prerequisite in this regard. With the amendment of the law on money and credit, Algeria has explicitly adopted price stability as an objective of monetary policy. This act is a major step toward building a suited institutional architecture for inflation targeting. However, a special effort must be undertaken to achieve the institutional and technical requirements needed to make inflation targeting a credible alternative to the traditional monetary policy in Algeria.