مجلة الميادين الإقتصادية
Volume 6, Numéro 1, Pages 487-508
2024-01-01

Predicting The Impact Of Fiscal And Monetary Policy On Economic Growth In Algeria During The Period 1980-2022

Authors : Messaoudi Malika .

Abstract

This study aims to forecast the impact of the fiscal and monetary policies on the Algerian economic growth. In this study, we used the Vector Auto regression (VAR) model, which is considered a powerful analytical tool that allows for the analysis of causal relationships and interactions among financial and monetary variables, represented by government expenditure, money supply, and exchange rate. We also aimed to estimate the extent of the influence of fiscal and monetary policies on Algerian economic growth using available data from the World Development Indicators (WDI) published by the World Bank during the period (1980-2022). The obtained estimation results indicate that monetary policy has a higher impact on Algerian economic growth compared to fiscal policy. These estimates are in line with economic theory and empirical evidence, further supported by statistical analysis.

Keywords

Fiscal policy ; monetary policy ; economic growth ; The (VAR) model