Browsing by Author "Toumi, Mohamed"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Measuring The Relationship Between Devaluation And Domestic Inflation In The Short Term- The Case Of Algeria An Econometric Study For The Period (1990-2021)
    (جامعة الوادي - University of Eloued, 2023-09-01) Toumi, Mohamed; Toumi, Bilal
    The aim of this study is to shed light on the measurement of the relationship and determine the direction of causality between the reduction of currency value and short-term local inflation rates. The study draws its importance from evaluating the actual impact on inflation rates as a direct result of currency devaluation. The study used a Vector Autoregression (VAR) model based on annual data for the period from 1990 to 2021. The results of the study showed, through a causality test, that there is a dynamic relationship between the reduction of currency value (exchange rate) and local inflation. By analyzing response functions, a response to local inflation rates was observed due to shocks in the rate of change of the nominal exchange rate and imported inflation rates, and this response decreases over time