Measuring the impact of government expenditure on money supply in Algeria during the period (1970-2016)

Abstract

This study aimed to measure the impact of government expenditure on money supply in Algeria during the period1970-2016, To accomplish this task, we used the latest statistical methods have been  modern in time series of estimation of the unrestricted regression error correction model (autoregressive Distribution lag (ARDL), this technique is new in analysis the cointegration and error correction models witch more accurate and efficient results , With the Using the statistical program (EVIEWS-10).The Most Important Findings of this study is: The Bound Test Approach through F-statistic, that there is a co-integration between the budget deficit and the independent variables, by the value of its calculated F-statistic, which is greater than the critical value at the significant level of 1%, 2.5% and 5% And 10%; She also pointed out that there is a positive effect of government expenditure on money supply. This shows that the higher the government expenditure, the higher the money supply