An empirical study of the relationship between public expenditures and money supply in Algeria : ARDL model for the period (1980-2020)‎

Abstract EN

This study aims to know the nature of the relationship between public expenditures and the money supply in Algeria, during the period between 1980 and 2020 using an auto-regressive distribution lag model.

the results of the bounds test indicate the existing of a long-run equilibrium relationship between the study variables, the results also indicate that there is a statistically significant negative relationship in the short and long term between the inflation rate and the money supply, as for public expenditures, they have a negative moral effect on the money supply in the short run only.