Taylor rule for the conduct of monetary policy objectives: in the case of Algeria
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Date
2022-06-10
Authors
Journal Title
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Publisher
University of Larbi Ben M'hidi Oum EL Bouaghi
Abstract
The goal of this study is to determine the
optimal Taylor rule within inflation gap and
GDP Gap under Inflation Targeting in the
case of Algeria through an empirical analysis
using a GMM (Generalized Method of
Moments) upon quarterly data for the period
2003-2017. Results show that the impact of
money market rate has a negligible effect on
inflation and economic activity. Main
Findings and results of this paper argue that
the implantation an implicit inflation
targeting framework using Taylor rule have
become more suitable to conduct and
improving monetary policy performance.
Description
Keywords
Monetary policy, Taylor rule, Algeria