The impact of monetary policy on the balance of payments in Algeria during the period 1990-2091

Abstract

This article aims to shed light on the impact of monetary policy on the balance of payments in Algeria during the period 1990-2091, based on the econometric approach through the use of a correction model. random errors and annual data covering ,the results of the study also showed that there is a limited impact of the discount rate and the exchange rate on the Algerian balance of payments, which indicates the limited contribution of these two components to the resolution of the imbalance of payments, while the absence of any effect of the money supply on the balance of payments indicates the absence of contribution of the money supply to the rebalancing of the balance of payments in Algeria. It is therefore not possible to ensure the effectiveness of monetary policy in restoring the equilibrium of the balance of payments.