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The Impact of Monetary Policy on Algerian Economic Activity

Received: 18 February 2019     Accepted: 20 March 2019     Published: 6 May 2019
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Abstract

This study investigated the role of monetary policy in financing economic activity in Algeria during the period 1990-2017 using quarterly data. The application of the VAR model has shown the negligible effect of credit and interest rate on gross domestic product. On the other hand, it appears a more significant positive effect of the real money supply. The modest contribution of the financial system to economic growth could be attributed to the excess of liquidity and the weak development of the financial system, the Algerian capital markets are nascent, the lengthy administrative procedures and the lack of competition in the banking sector.

Published in Journal of Business and Economic Development (Volume 4, Issue 1)
DOI 10.11648/j.jbed.20190401.13
Page(s) 15-22
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Monetary Policy, Economic Growth, Credits, Interest Rate

References
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  • APA Style

    Radia Benziane. (2019). The Impact of Monetary Policy on Algerian Economic Activity. Journal of Business and Economic Development, 4(1), 15-22. https://doi.org/10.11648/j.jbed.20190401.13

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    ACS Style

    Radia Benziane. The Impact of Monetary Policy on Algerian Economic Activity. J. Bus. Econ. Dev. 2019, 4(1), 15-22. doi: 10.11648/j.jbed.20190401.13

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    AMA Style

    Radia Benziane. The Impact of Monetary Policy on Algerian Economic Activity. J Bus Econ Dev. 2019;4(1):15-22. doi: 10.11648/j.jbed.20190401.13

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  • @article{10.11648/j.jbed.20190401.13,
      author = {Radia Benziane},
      title = {The Impact of Monetary Policy on Algerian Economic Activity},
      journal = {Journal of Business and Economic Development},
      volume = {4},
      number = {1},
      pages = {15-22},
      doi = {10.11648/j.jbed.20190401.13},
      url = {https://doi.org/10.11648/j.jbed.20190401.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20190401.13},
      abstract = {This study investigated the role of monetary policy in financing economic activity in Algeria during the period 1990-2017 using quarterly data. The application of the VAR model has shown the negligible effect of credit and interest rate on gross domestic product. On the other hand, it appears a more significant positive effect of the real money supply. The modest contribution of the financial system to economic growth could be attributed to the excess of liquidity and the weak development of the financial system, the Algerian capital markets are nascent, the lengthy administrative procedures and the lack of competition in the banking sector.},
     year = {2019}
    }
    

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    AU  - Radia Benziane
    Y1  - 2019/05/06
    PY  - 2019
    N1  - https://doi.org/10.11648/j.jbed.20190401.13
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    T2  - Journal of Business and Economic Development
    JF  - Journal of Business and Economic Development
    JO  - Journal of Business and Economic Development
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    AB  - This study investigated the role of monetary policy in financing economic activity in Algeria during the period 1990-2017 using quarterly data. The application of the VAR model has shown the negligible effect of credit and interest rate on gross domestic product. On the other hand, it appears a more significant positive effect of the real money supply. The modest contribution of the financial system to economic growth could be attributed to the excess of liquidity and the weak development of the financial system, the Algerian capital markets are nascent, the lengthy administrative procedures and the lack of competition in the banking sector.
    VL  - 4
    IS  - 1
    ER  - 

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Author Information
  • Faculty of Economics, Business and Management Sciences, University of Algiers, Algiers, Algeria

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