Hard currency inflows and sterilization policy in Algeria: An ARDL approach
This paper aims to explore to what degree the Algerian Bank sterilized hard currency inflows using monthly data covering the period January 2002-December 2016, by estimating a sterilization coefficient in both long and short run terms using and ARDL approach, and also by applying a TYDL Granger caus...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2017-09-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1296.pdf
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| _version_ | 1818931862124363776 |
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| author | Aissa DJEDAIET Hicham AYAD |
| author_facet | Aissa DJEDAIET Hicham AYAD |
| author_sort | Aissa DJEDAIET |
| collection | DOAJ |
| description | This paper aims to explore to what degree the Algerian Bank sterilized hard currency
inflows using monthly data covering the period January 2002-December 2016, by estimating a
sterilization coefficient in both long and short run terms using and ARDL approach, and also by
applying a TYDL Granger causality to investigate the relationship among concerned variables.
Our results showed that there are four co-integration vectors among the variables, and the
evidence suggested that the sterilization coefficient is equal to -0.99, i.e. near to the minus one (-1)
which indicates the full sterilization (Algerian Bank roughly sterilizes 99% of the frequent hard
currency inflows in both short-run and long-run terms). Indeed, the results also indicated that
there are three unidirectional causalities running from Algerian bank’s net domestic and foreign
assets to the money multiplier and from the latter to the interest rate. |
| first_indexed | 2024-12-20T04:23:20Z |
| format | Article |
| id | doaj.art-7a91b825c8674969b06efd7440f450d7 |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-20T04:23:20Z |
| publishDate | 2017-09-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-7a91b825c8674969b06efd7440f450d72022-12-21T19:53:36ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292017-09-01XXIV3839618418678Hard currency inflows and sterilization policy in Algeria: An ARDL approachAissa DJEDAIET0Hicham AYAD1 University of Larbi Ben M’hidi Oum El Bouaghi, Algeria University of Abu Bakr Belkaid Tlmecen, Algeria This paper aims to explore to what degree the Algerian Bank sterilized hard currency inflows using monthly data covering the period January 2002-December 2016, by estimating a sterilization coefficient in both long and short run terms using and ARDL approach, and also by applying a TYDL Granger causality to investigate the relationship among concerned variables. Our results showed that there are four co-integration vectors among the variables, and the evidence suggested that the sterilization coefficient is equal to -0.99, i.e. near to the minus one (-1) which indicates the full sterilization (Algerian Bank roughly sterilizes 99% of the frequent hard currency inflows in both short-run and long-run terms). Indeed, the results also indicated that there are three unidirectional causalities running from Algerian bank’s net domestic and foreign assets to the money multiplier and from the latter to the interest rate. http://store.ectap.ro/articole/1296.pdf hard currency inflowssterilization policysterilization coefficientARDL |
| spellingShingle | Aissa DJEDAIET Hicham AYAD Hard currency inflows and sterilization policy in Algeria: An ARDL approach Theoretical and Applied Economics hard currency inflows sterilization policy sterilization coefficient ARDL |
| title | Hard currency inflows and sterilization policy in Algeria: An ARDL approach |
| title_full | Hard currency inflows and sterilization policy in Algeria: An ARDL approach |
| title_fullStr | Hard currency inflows and sterilization policy in Algeria: An ARDL approach |
| title_full_unstemmed | Hard currency inflows and sterilization policy in Algeria: An ARDL approach |
| title_short | Hard currency inflows and sterilization policy in Algeria: An ARDL approach |
| title_sort | hard currency inflows and sterilization policy in algeria an ardl approach |
| topic | hard currency inflows sterilization policy sterilization coefficient ARDL |
| url |
http://store.ectap.ro/articole/1296.pdf
|
| work_keys_str_mv | AT aissadjedaiet hardcurrencyinflowsandsterilizationpolicyinalgeriaanardlapproach AT hichamayad hardcurrencyinflowsandsterilizationpolicyinalgeriaanardlapproach |