Open AccessQuantitative Easing as a Mechanism for Non-Traditional Monetary Policy and Implications of its Adoption in the Algerian Economy: Econometric Study using the ARDL Model
Author(s) -
Salah Ayadi,
Abdelaouahed Serarma
Publication year - 2019
Publication title -
mağallaẗ buḥūṯ al-idāraẗ wa al-iqtiṣād
Language(s) - English
Resource type - Journals
eISSN - 2710-8856
pISSN - 2676-184X
DOI - 10.48100/merj.v1i4.65
Subject(s) - quantitative easing , economics , monetary policy , econometric model , monetary economics , order (exchange) , macroeconomics , affect (linguistics) , mechanism (biology) , central bank , econometrics , finance , linguistics , philosophy , epistemology
This study aims to identify some concepts related to non-traditional monetary policy instruments, including the quantitative easing tool, and discuss the main reasons for Algeria's adoption of this instrument.
The study concluded that the adoption of the policy of quantitative easing in Algeria is not to affect economic variables but to finance the budget deficit. In order to estimate the impact of monetary issuance on economic growth for 2003Q1-2018Q4, the ARDL model was used, where the results resulted in a direct relationship between M2 and GDP.