دراسات اقتصادية
Volume 18, Numéro 2, Pages 17-34
2024-08-08

Understanding Inflation In Algeria Between 2000 And 2021.

Authors : Aggoune Karim . Zidelkhil Halim .

Abstract

Our study examines the causes of inflation in Algeria from 2000 to 2021. We focus on key variables commonly cited in economic literature, including monetary aggregates such as M2, equipment and operating expenditures, exchange rates, and imports. Using an ARDL model with annual data, we analyze short and long-term coefficients. Our results show that in the short term, operating expenditure, M2, and imports are positively correlated with inflation, while equipment expenditures exhibit a negative correlation with a one-period delay. In the long term, however, monetary aggregates and imports emerge as the primary drivers of inflationary pressures in Algeria.

Keywords

Inflation ; exchange rate ; budgetary expenditures ; ARDL