The impact of quantitative easing mechanism on macroeconomic indicators in Algeria

Abstract EN

fter the collapse of oil prices in the global market in 2014, and its serious challenges for an oil-producing dependent country such as Algeria, which were mainly represented in the scarcity of national revenues and the terrible decline in the level of liquidity at banks.

Make the government resort to unconventional solutions through the quantitative easing (QE), it’s most prominent manifestations is the printing of the central bank for more banknotes to overcome the projections of the crisis.

Thus, this study has sought to study the reflection of this mechanism on some macroeconomic indicators.

The study revealed that this mechanism had positive effects on some macroeconomic indicators, most notably the coverage of treasury financing needs without resorting to borrowing, and Provide liquidity at the banks.

Nevertheless, it carries many negative effects on other indicators, notably the rise in domestic debt and taxes, rate of inflation and interest rate, Unemployment rates, and the Devaluation of the local currency.