IDEAS home Printed from https://ideas.repec.org/a/nup/jrmdke/v11y2023i163-83.html
   My bibliography  Save this article

The Impact of Financial Liberalization on the Effectiveness of Monetary Policy in Algeria

Author

Listed:
  • Rabia BENARBIA

    (University of Mascara)

  • Kada AIBOUD

    (University of Mascara)

Abstract

The objective of this study is to measure the impact of financial liberalization on the effectiveness of monetary policy in Algeria during the period 1970-2021 using the Autoregressive Distributed Gaps (ARDL) model and analyzing the implications of the financial liberalization policy on the monetary delivery channels as well. In the context of the liberalization of the financial sector, both channels of the exchange rate and financial assets play an effective role in transferring the impact of monetary policy to the real sector compared to the channels of interest rate and bank lending, with central banks relying on the use of indirect tools that depend on market forces to manage their monetary policy. The results of the study also concluded that the policy of financial liberalization represented in loans granted to the private sector as a percentage of GDP positively affects the effectiveness of monetary policy and enhances its ability as a tool to direct the economy towards achieving the goal of economic growth.

Suggested Citation

  • Rabia BENARBIA & Kada AIBOUD, 2023. "The Impact of Financial Liberalization on the Effectiveness of Monetary Policy in Algeria," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 11(1), pages 63-83, March.
    • Handle: RePEc:nup:jrmdke:v:11:y:2023:i:1:63-83
    as

    Download full text from publisher

    File URL: https://www.managementdynamics.ro/index.php/journal/article/view/498
    Download Restriction: no
    File URL: https://www.managementdynamics.ro/index.php/journal/article/view/498
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nup:jrmdke:v:11:y:2023:i:1:63-83. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cristian-Mihai VIDU (email available below). General contact details of provider: https://edirc.repec.org/data/fmsnsro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.