The form of economic equilibrium under the policy of financial and monetary contraction

Abstract

The objective of this study is to study the economic economy of the Algerian economy، and the impact of deflationary and monetary policy on this balance by studying and analyzing the variables of internal and external balance indicators in order to facilitate the proposal of measures. We have relied on statistical data from different sources and bodies covering the period 1990-2016، to estimate the model of economic balance in Algeria according to the economic theory to conclude، This deflationary fiscal policy (fiscal policy) is more effective than deflationary monetary policy and closer to equilibrium. Achieving economic balance in Algeria with a certain level of income and an acceptable rate of interest.