The Impact Of Exchange Rate On Inflation And Economic Growth in Algeria

Econometric Study

Abstract

This paper examined the impact of the exchange rate on inflation and economic growth in Algeria, during the period (1980-2012). Where use error correction model (ECM) to know the balance of a long term relationship between the variables, showed the results of statistical tests, that the variables of the study is not stable at the level, but stabilized after taking the first difference, and the integration of the first class, which indicates the possibility of using ordinary least squares to estimate the relationship between variables as the Granger causality test and the causal relationship between the variables results showed that every relationship in one direction