Demand side determinants of inflation in Algeria A study econometric using autoregressive distributed lag model (ARDL) For the Period (1990-2021)

Abstract

This study aims to attempt to analyse the impact of many factors affecting Algeria's inflation rates by focusing on the demand-side determinants of total government expenditure, money supply rate, imports of goods and services, and gross domestic product (GDP) over the period )1990-2021(based on the autoregressive distributed lag model (ARDL). The study found that the factors representing Algeria's demand side have a significant short- and long-term impact on inflation as the demand side is still seen as one of the most important determinants of inflation and this is confirmed by the results of the complementary relationship between the study variables, Monetary supply remains the most important determinant of the demand side affecting inflation in Algeria during the study period in the short and long term. the Algerian Government should ensure its control through appropriate fiscal and monetary policies, without losing sight of the obligation to diversify the production structure and eliminate the rent dependence of Algeria's economy.

Arabic abstract is available online.