Revue d'économie et de statistique appliquée
Volume 14, Numéro 2, Pages -
Auteurs : Samer Mehibel. Yacine Belarbi.
In this paper, we analyze Inflation Dynamics in Algeria between 2002 and 2016. For a better understanding of inflation we split the Consumer Price Index (CPI) into its components and we explore its basic time series properties. For the analysis, we used a Vector Auto Regressive model (VAR), impulse response functions (IRF) and variance error decomposition (VDC) to uncover possible links between the components of inflation. According to the results we found, inflation in Algeria is persistent; shocks are lasting longer and having impact on the future inflation path.
Inflation dynamics, Inflation persistence, The Algerian economy, Vector Auto Regression (VAR).