Real equilibrium exchange rate modeling : econometric study using the ARDL methodology over the period (1986-2018)‎

Abstract EN

This study aims to identify the determinants of the real equilibrium exchange rate of the Algerian dinar using the ARDL approach during the period (1986-2018).

The results of the long-term model estimation have shown that oil prices and productivity differentials have a positive effect on the real effective exchange rate, while inflation and trade openness have a negative effect on it, and the results of the error correction model showed that the deviation of the exchange rate from the equilibrium rate is corrected each year by 28.

36%.