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