Fiscal Theory Of The Price Level And Domestic Public Debt In Algeria During The Period Between (1997-2018) Using Adl Model

Abstract

The primary goal of this paper is to investigate the fiscal theory of the price level (FTPL) and the role of domestic public debt in the context of (FTPL) using annual data from the period spanning between 1997-2019. Hence, we try to check the effect of budget deficit on GDP, domestic public debt to GDP, broad money growth on the inflation rate, moreover the model used (ARDL) model. Furthermore, in our analysis, the results indicate that domestic public debt has no role in the inflation rate (FTPL) in the case of Algeria. Still, the results proved the strong existence of (FTPL) according to a non-Ricardian regime in Algeria's economy