La relation entre le taux de change parallèle et la demande de la monnaie Cas de l’Algérie durant 1980-2010: Une approche économétrique

The relationship between the parallel exchange rate and demand for money Case of Algeria during 1980-2010: An econometric approach

Ali Bendob and Kamel Si Mohemmed

MPRA Paper from University Library of Munich, Germany

Abstract: The main objective of this study is to analyze the relationship between the exchange rate and the parallel circulation of money (M1) in Algeria during the period 1980-2010. For this purpose, we use the proposed especially by Pesaran et al ARDL model. (2001). the results confirm the convergence of long-term determinants of the demand for money (income, consumption price index, interest rate deposits, the parallel exchange rate). In addition, the CUSUM test and CUSUMSQ clearly show the stability of the long-term relationship during the estimation period between the parallel exchange rate and demand for the currency in Algeria. Instead, the relationship becomes unstable once we use the official exchange rate.

Keywords: Demand for the currency; the parallel exchange rate; the ARDL model; the CUSUM test and CUSUMSQ; the Algerian economy. (search for similar items in EconPapers)
JEL-codes: E41 F31 (search for similar items in EconPapers)
Date: 2014, Revised 2014
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Published in El-Bahith Review F.14(2014): pp. 17-25

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