The effectiveness of monetary policy instruments under inflation targeting : an emprical analysis case of Algeria during the period 1970-2018

الملخص EN

The aim purpose of this paper is to show the relation between inflation and monetary policy instruments in Algeria in the short and long run, as well as the use of unit root tests, bounds test and evaluation of the model.

To achieve this goal, we used the ARDL methodology during the period (1970-2018) using EVIEWS 10.

The results indicate that there is a long-term effect between independent variables and inflation as well as a positive relation between, rediscount rates and real output and inflation in the short and long term while there is no relation with the Other variables.

We run also the Toda and Yamamoto approach, In contrast we found that there is causality between inflation and Exchange rates, deposit interest rates.