The impact of the independence of the Bank of Algeria on the effectiveness of monetary policy in combating inflation: for the period (1990-2019(

Abstract

This study aims to know the extent of the independence of the Bank of Algeria according to the amendments to the monetary and loan laws, and what is the impact of this independence in combating inflation. We have used the descriptive analytical method .We ended up with a set of results, the most important of them That there was no clear relationship between the independence of the Bank of Algeria and the rates of inflation in some periods, because inflation was one of the most important reasons for imported inflation, the independence also enabled the Bank of Algeria to use its tools and thus control inflation rates, except that Law 17/10 hit the independence and credibility of the Bank of Algeria Through licensing the process of quantitative easing (unconventional financing) unconditionally for a period of 05 years, although the effect of this unconventional financing did not appear on inflation rates in the short term, and its effect may appear in the medium and long term