Analyzing and measuring the impact of monetary policy on the economic growth of the Algerian economy during the period (1990-2020)

Abstract

This research aims to analyze and measure monetary policy on the rate of economic growth through a set of independent variables during the period (1990-2020). We have dealt with the theoretical framework of the study and an analysis of the most important developments and monetary tools, as well as the econometric study based on Granger's causality model and estimating the model's coefficients using the VAR model and conducting the appropriate statistical tests. The study concluded that there is a causal relationship in only one direction between the growth of the gross domestic product (GDP) and the changes in exchange rates in Algeria during the study period, while there is no causal relationship from the money supply to economic growth, due to the limited impact of monetary policy on the Algerian economy, As well as the nature of the Algerian economy, which remains linked to the extent of improvement in fuel prices in international markets during the study period.