Estimating central bank behavior in adjusting interest rates : evidence from Algerian economy

Joint Authors

Bilarabi, Yasin
Zuqali, Radyah

Source

Revue D'économie et de Statistique Appliquée

Issue

Vol. 18, Issue 1 (30 Jun. 2021), pp.16-28, 13 p.

Publisher

National Higher School of Statistics and Applied Economics

Publication Date

2021-06-30

Country of Publication

Algeria

No. of Pages

13

Main Subjects

Economy and Commerce
Financial and Accounting Sciences

Topics

Abstract EN

We develop in this paper an empirical framework to estimate the reaction function of Algeria's Central Bank using an augmented Taylor rule.

Our purpose is to test the relationship between interest rates and the stated monetary policy goals of controlling inflation and stimulating output growth.

We propose the use of Kalman filter technique to estimate both the unobserved variables and the parameters of the model.

Our empirical findings based on quarterly data covering the period Q1: 2000 to Q1: 2019 on Algerian economy, which is considered as oil dependent and a fairly dollarized small open economy, show that the Central Bank instrument doesn't have an effect on inflation and output gap.

American Psychological Association (APA)

Zuqali, Radyah& Bilarabi, Yasin. 2021. Estimating central bank behavior in adjusting interest rates : evidence from Algerian economy. Revue D'économie et de Statistique Appliquée،Vol. 18, no. 1, pp.16-28.
https://search.emarefa.net/detail/BIM-1247656

Modern Language Association (MLA)

Zuqali, Radyah& Bilarabi, Yasin. Estimating central bank behavior in adjusting interest rates : evidence from Algerian economy. Revue D'économie et de Statistique Appliquée Vol. 18, no. 1 (Jun. 2021), pp.16-28.
https://search.emarefa.net/detail/BIM-1247656

American Medical Association (AMA)

Zuqali, Radyah& Bilarabi, Yasin. Estimating central bank behavior in adjusting interest rates : evidence from Algerian economy. Revue D'économie et de Statistique Appliquée. 2021. Vol. 18, no. 1, pp.16-28.
https://search.emarefa.net/detail/BIM-1247656

Data Type

Journal Articles

Language

English

Notes

Includes appendix : p. 27-28

Record ID

BIM-1247656