Applying Mathematical Monetary Policy Rules in Algeria: Tylor’s Rule

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Published: Jun 30, 2023
DOI: https://doi.org/10.58205/fber.v7i2.1731
Keywords:
Taylor rule; Inflation targeting; Monetary policy; Exchange rate.

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Yousouf Chemseddin Khaldoun1
Markets, Employment, Legislation and Simulation in the Maghreb laboratory, University of Belhadj Bouchaib, Ain temouchent (Algeria
Abdelkader Bouali
Markets, Employment, Legislation and Simulation in the Maghreb laboratory, University of Belhadj Bouchaib, Ain temouchent (Algeria),
Yassine Meliani
Markets, Employment, Legislation and Simulation in the Maghreb laboratory, University of Belhadj Bouchaib, Ain temouchent (Algeria),

Abstract

In this paper, we studied how far the monetary policy in Algeria is submitted to mathematical rules, and if the Bank of Algeria really adopt the augmented Taylor rule in the inflation targeting process and its effectiveness.


      We concluded that the latter is ineffective and that the Taylor rule does not explain the behaviour of monetary policy in Algeria due to the absence of the success factors, such as a high degree of transparency and accountability about monetary policy, in addition to the credibility of the central bank and its independence from all pressures that would deviate monetary policy from the desired objectives

Article Details

How to Cite
Khaldoun1, Y. C., Bouali, A., & Meliani, Y. (2023). Applying Mathematical Monetary Policy Rules in Algeria: Tylor’s Rule. Finance and Business Economies Review, 7(2), 148–161. https://doi.org/10.58205/fber.v7i2.1731
Issue
Vol. 7 No. 2 (2023)
Section
Articles

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