Analog test of the relationship in the impact of inflation rates on Algeria's economic growth in (1990-2019)

Abstract

This paper studies the nature of the economic relationship between inflation and economic growth in Algeria during the period (1990-2019), which was characterized by the implementation of a program of economic financial and administrative reform for the transition from a directed economy to a market economy under the directives of the International Monetary Fund and the World Bank;

The study concluded that there is a negative long-term relationship between the two variables with high flexibility and a positive relationship in the short term, and Inflation rates disproportionately affect economic growth. The study also found that the monetary authority should target appropriate inflation rates according to the prevailing economic situation in order to stimulate & increase economic growth rates, and limit its aggravation to ensure macroeconomic integrity