The effects of applying quantitative easing policy and its impact on economy in Algeria

Abstract EN

This study aimed to shed light on the quantitative easing policy as one of the untraditional monetary policy tools; it was adopted as an emergency solution to contain the financial crisis effects.

The methods and results of applying the quantitative easing policy differ from one country to another; while the USA and England are considered as models of this mechanism's success; Japan, the European Union and Venezuela are considered as models of its failure, while Algeria is still anticipating in view of the modernity of this experience, even if some of its accomplished results in a short term are positive, it has severe negative effects on economy, which leads the new Algerian government to let go on money print and unfollow this policy; because of the structural disruption in Algerian economy and the inflexibility of the productive device.