مجلة النمو الاقتصادي والمقاولاتية
Volume 6, Numéro 3, Pages 1-12
2023-12-30
The Impact Of The Exchange Rate On Inflation In Algeria
Authors : Ait Kaci Azzou Redouane .
Abstract
The strength of an economy is measured by several indicators, with one of the most crucial being the stability and steadiness of the exchange rate. A robust economy fosters a strong and desirable currency, whereas inflation poses an economic challenge faced by many countries due to its negative repercussions on economic activities. The aim of this study was to determine the impact of the exchange rate on inflation in Algeria during the period 2019-2022. This was achieved by employing a descriptive-analytical approach to explain the study's variables. Additionally, an empirical approach was used, relying on the Autoregressive Distributed Lag (ARDL) time series method. The study concluded the existence of a causal relationship between the exchange rate and inflation in both the short and long terms.
Keywords
exchange rate ; inflation ; ARDL ; Algeria
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