Prices dynamics in Algeria
A quantity theory of price level analysis
Keywords:
Money, inflation, the quantity theory, the central bank, Johansen cointegration, VAR modeling
Abstract
The quantity theory of money explains the relationship between the quantity of money in an economy and the price level of the goods and services.¶ This study analyzes this report for Algerian economy during the period of 1989-2013. Using the Johansen cointegration method, VAR modeling and the Granger causality test, we did not find any relationship between the money supply and the prices what called into question the sight monetarist according to which inflation is always a monetary phenomenon
Published
2018-12-31
Section
Articles
