The Main Determinants of Inflation in Algeria: An ARDL Model

Si Mohammed Kamel

Article Details

The Main Determinants of Inflation in Algeria: An ARDL Model

Authors:

Si Mohammed Kamel

Publisher:

Université Aboubeker Belkaid de Tlemcen

Journal:

les cahiers du mecas Vol.12 Issue 1, pp.6-15

Document Type:

Article

Publication Date:

6/2016

Document Language:

English

Document ID (Org No.):

2001406313

pISSN:

2600-6294

Keywords:

Abstract:

 Inflation appears as a first challenge for recent economic performance in Algeria. This study examines the main determinants of inflation in Algeria using the ARDL model during the period 1980-2012. In this context, this paper focuses on the major sources to explain inflation trend in Algeria (imports price, oil price and money stock, government expenditure and effective nominal exchange rates of the Algerian Dinar). 
Our results based on ARDL model establish that a stable long-run relationship exists between inflation and its determinants. However, In the short run, only external factors (imports price, oil price and effective and nominal exchange rates) impact inflation in Algeria. Consequently, we may infer, as far as the impact on inflation is concerned, that fiscal and monetary policies cannot on their own be statistically significant.

Article Details

The Main Determinants of Inflation in Algeria: An ARDL Model

Authors: Si Mohammed Kamel

Publisher: Université Aboubeker Belkaid de Tlemcen

Journal: les cahiers du mecas Vol.12 Issue 1, pp.6-15

Document Type: Article

Publication Date: 6/2016

Document Language: English

Document ID (Org No.): 2001406313

pISSN: 2600-6294

inflation

fiscal and monetary policies

imports price

exchange rate

ARDL Model

Issues

Authors:

Si Mohammed Kamel

Publisher:

Université Aboubeker Belkaid de Tlemcen

Journal:

les cahiers du mecas Vol.12 Issue 1, pp.6-15

Document Type:

Article

Publication Date:

6/2016

Document Language:

English

Document ID (Org No.):

2001406313

pISSN:

2600-6294