The Impact of Monetary Policy on Economic Growth - An Empirical Study of of the Case of Algeria (1990-2014) –

Abstract

This study aims to study the impact of monetary policy on economic growth during the period (1990-2014). For this, the study uses econometric modeling (VAR) proposed by SIMS (1989). The results of our econometric estimation show that there is no cointegration relationship between the variables of the model. Also, it was distinguished from the Granger causality test the existence of a unidirectional causality exogenous variables: exchange rate and the credit to the economy to the endogenous variable '' economic growth ''. Finally, the modeling results (VAR) show that monetary policy plays a role as a determinant of growth variation in Algeria. While the credit contribution to the economy and the exchange rate in the variation of economic growth is less variation in the short term, but their contributions are improving the medium and long term.