The Impact of Monetary Policy on Algerian Economic Activity

摘要

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.