Threshold Impact of monetary policy in Algeria: Threshold Regression TR TR أثر العتبة للسياسة النقدية على التضخم في الج ا زئر: انحدار العتبة

Abstract

This study aimed to investigate the extent monetary policy efficiency to controlling the inflation rate, through determine threshold of monetary policy during the period 2017 M01 to 2022 M06 in Algeria. Using Threshold Regression. The econometrics results show that the threshold variable was the exchange rate. Based on the threshold values of EXR, we obtained 03 regimes Where the effect of the EXR was asymmetric between the first and the second and third regime, which highlighted the existence of a direct relationship, and the EXR lead to an increase in the inflation rate, starting from the threshold 119.15959. Also, the effect of money supply was negative in the first regime, and positive in the second regime, while it was not statistically significant in the third. The results also showed that there was no statistically significant effect for each of the requirement reserve rate and the rediscount rate on the inflation.

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