Sources of Inflation in Algeria; 1970-2009

Inflation is regarded as regressive taxation against the poor. The most visible impact of inflation in recent times is its effect on real output and relative prices. The study focuses on investigating determinants of inflation in Algeria. For that purpose, this study has undertaken annual time serie...

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Main Author:	Baba, Boubekuer
Format:	Thesis
Language:	eng eng
Published:	2012
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/3243/1/BOUBEKEUR_BABA.pdf https://etd.uum.edu.my/3243/3/BOUBEKEUR_BABA.pdf
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id	my-uum-etd.3243
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Hassan, Sallahuddin
topic	HG Finance
spellingShingle	HG Finance Baba, Boubekuer Sources of Inflation in Algeria; 1970-2009
description	Inflation is regarded as regressive taxation against the poor. The most visible impact of inflation in recent times is its effect on real output and relative prices. The study focuses on investigating determinants of inflation in Algeria. For that purpose, this study has undertaken annual time series data for the period from 1970 to 2009. This study used the variables Gross Domestic Product (GDP), government expenditures, money supply and exchange rate as determinants of inflation in Algeria. The test for the unit roots has been performed by employing the Augmented Dickey Fuller test and Phillip Perron test. Long run and short run estimation have been investigated using Johansen Cointegration and Error Correction approach. The findings of the study reveal that in the long run inflation in Algeria is positively influenced by money supply, government expenditures and exchange rate. On the other hand the GDP reduces the overall price level in Algeria. Long run elasticities of price level with respect to money supply, GDP,government expenditures,money supply and exchange rate are -88.99,51.41,33.19 and 12.18, respectively. In the short run, the lagged GDP and the lagged exchange rate directly affect the inflation of current year. Therefore improvement in GDP, reducing government expenditures and controlling the monetary mass are necessary to stabilize the price level.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Baba, Boubekuer
author_facet	Baba, Boubekuer
author_sort	Baba, Boubekuer
title	Sources of Inflation in Algeria; 1970-2009
title_short	Sources of Inflation in Algeria; 1970-2009
title_full	Sources of Inflation in Algeria; 1970-2009
title_fullStr	Sources of Inflation in Algeria; 1970-2009
title_full_unstemmed	Sources of Inflation in Algeria; 1970-2009
title_sort	sources of inflation in algeria; 1970-2009
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2012
url	https://etd.uum.edu.my/3243/1/BOUBEKEUR_BABA.pdf https://etd.uum.edu.my/3243/3/BOUBEKEUR_BABA.pdf
_version_	1747827529406742528
spelling	my-uum-etd.32432016-04-18T08:28:36Z Sources of Inflation in Algeria; 1970-2009 2012-06 Baba, Boubekuer Hassan, Sallahuddin Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Inflation is regarded as regressive taxation against the poor. The most visible impact of inflation in recent times is its effect on real output and relative prices. The study focuses on investigating determinants of inflation in Algeria. For that purpose, this study has undertaken annual time series data for the period from 1970 to 2009. This study used the variables Gross Domestic Product (GDP), government expenditures, money supply and exchange rate as determinants of inflation in Algeria. The test for the unit roots has been performed by employing the Augmented Dickey Fuller test and Phillip Perron test. Long run and short run estimation have been investigated using Johansen Cointegration and Error Correction approach. The findings of the study reveal that in the long run inflation in Algeria is positively influenced by money supply, government expenditures and exchange rate. On the other hand the GDP reduces the overall price level in Algeria. Long run elasticities of price level with respect to money supply, GDP,government expenditures,money supply and exchange rate are -88.99,51.41,33.19 and 12.18, respectively. In the short run, the lagged GDP and the lagged exchange rate directly affect the inflation of current year. Therefore improvement in GDP, reducing government expenditures and controlling the monetary mass are necessary to stabilize the price level. 2012-06 Thesis https://etd.uum.edu.my/3243/ https://etd.uum.edu.my/3243/1/BOUBEKEUR_BABA.pdf text eng validuser https://etd.uum.edu.my/3243/3/BOUBEKEUR_BABA.pdf text eng public masters masters Universiti Utara Malaysia Durevall.D. & Ndung'u, N.S. (2001). 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Sources of Inflation in Algeria; 1970-2009

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