Requirements of Adopting a Strategy that Targets Inflation as a Modern Framework for the Management of a Monetary Policy in Algeria
Keywords:
addressing inflation, the central bank, monetary policyAbstract
The inflation targeting policy is one of the modern approaches that proved its effectiveness in many countries that have adopted it. Because Algeria, as any other country suffers a lot from inflation that results in many negative effects on the economical and the social side too. For that, Algeria has tried to apply this policy on different phases. This was clear in 2010. Despite all the trials of adjustments and procedures of The Central Bank; it did not succeed for a long term and couldn›t maintain the targeting Policy. This what was explained in this research This stidy highlights the reason of the Algerian inflation is mostly because of the bulk of imports. Therefore, Algeria has to reduce its dependence on external trade, so it can get rid of the external effects
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