Evaluation of Monetary Policy in Light of the Reforms of the Money and Credit Law in Algeria An Analytical Study for the Period 2000–2021

Abstract

This paper aims to assess monetary policy in its various tools under the reforms of the Monetary and Loan Law in Algeria during the study period (2000-2021), by conducting an analytical study of indirect monetary policy instruments posed by Legal reserve rate, Discount rate, open market operations, tendering of liquidity, deposit facilities and Monetary mass M2 during the study period. The results of the study demonstrated the effectiveness of the Discount rate instrument in adjusting the cash supply other than the Legal reserve rate. Open market policy and other instruments were used decisively and relatively effectively, and the Monetary mass M2 in its broad sense witnessed continuous rises, as a result of the authorities' adoption of large economic growth programmes, the rise in total loans to the economy and the State, as well as the rise in foreign currency reserves; In addition, a package of stimulus measures for economic activity during the COVID-19 crisis was launched, most notably the financial refinancing program of approximately 2100 billion dz in 2021.