Money supply as an intermediate variable to investigate the impact of exchange rate on inflation in Algeria during the period 2002-2018

الملخص EN

The purpose of this research is to investigate the relationship between exchange rate and inflation over the period 2002-2018 by taking into consideration the impact of money supply.

the researcher used some statistical tools such as: partial correlation, person correlation and regression analysis.

the research concluded that the exchange rate didn’t affect directly the inflation rate recorded over the studied period, but it had an impact on increasing, firstly, the excess liquidity of money.

that’s why it’s very important for the bank of Algeria to use the monetary policy tools as long as the exchange rate is expected to get down in the market.