Evaluating the impact of monetary policy on the growth economic of Algeria : a structural VECM approach for the period 1980-2017

Abstract EN

This study examines the impact of monetary policy on economic growth in Algeria.

using time-series data covering the period of 1980 to 2017.

the study has employed the (SVECM) model, we conduct the experiment using three alternative policy instruments : broad money (M2), discount rate, and the real effective exchange rate (REER).

inflation rate (INF).

the results showed that the control of money supply in the Algerian economy is the most influential tool to convey the effects of monetary policy.

which mean that monetary policy has a relative effectiveness in targeting economic growth and inflation through a flexible steering of quantitative instruments, as liquidity coverage ratio, that directly affect on money supply.