The Influence of Monetary Policy on the Kaldor Variables Magic Box - Case Study of Algeria During the Period (1970- 2014) -

Abstract

The aim of this study is to look for the effectiveness of monetary policy in the optimization of the variables in Algeria Kaldor magic box, In order to develop an appropriate monetary policy, trying to correct troubles in the structure of the economy to exploit the economic resources and the financial surplus to achieve those goals in the future, this method knows the magic square of Kaldor (not inflation, not unemployment, high economic growth, the balance of the balance of payments), We relied on World Bank data (2014), which covers the period from 1990 to 2014, It can be concluded that strong correlations and predictability between monetary policy changes and the variables magic box for Kaldor is the impact of the optimization impact, but not enough. Consequently, monetary policy did not fully optimize the variables of the square in Algeria.