The Role of the Credit Channel in the Evolution of the General Price Level in Algeria (2000-2017)

Abstract

The credit channel is considered one of the most important channels of transmission of the real-time monetary impact of the real economy, which have emerged recently, as it is more effective than other channels: the interest rate channel, the exchange rate channel and the bond price channel, especially in countries whose economy relies on financial intermediaries to identify Its national income. In order to understand the importance and role of this channel in transmitting the monetary impact of the Algerian economy, our study aimed to highlight its mechanism of action by focusing on the impact of the decisions of the monetary authority, which moves to the general level of prices through the credit channel in Algeria, through tracking the developments in the volume of loans provided to the economy, and analyzing their causes and effects on the development of the general level of prices.