The use of seigniorage in financing budget deficits in Algeria : an ARDL approach

الملخص EN

This study proposes to assess the seigniorage perceived by the Algerian's budgetary authority as well as its link with the budget deficits, for the period which spans between 1965 and 2018.

The seigniorage calculation is inspired by a large review of the literature.

Analysis of the composition of seigniorage illustrates that purely monetary seigniorage was used in particular before 1979.

Since then, the inflation tax has been the essential component of the seigniorage calculated between 1980 and 2018.

The graphical and econometric results, using the ARDL model, show at the same time, the importance of seigniorage in financing Algerian's budget deficit, notably by the inflation tax in the short and long term.