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Money Supply, Inflation and Economic Growth: Co-Integration and Causality Analysis Cover

Money Supply, Inflation and Economic Growth: Co-Integration and Causality Analysis

By: Ayad Hicham  
Open Access
|Sep 2020

Abstract

The aim of this paper is to examine the relationship between money supply, inflation rate, and economic growth in the context of Algeria, using various econometric procedures as co-integration without and with structural breaks in addition to three different ways of causality test for the period 1970-2018, the results confirm the long-run relationship between the variables with more than three structural breaks, but with the absence of the effects of money supply and inflation rate on economic growth both in short run and long run terms, on the other hand, the causality results confirmed the existence of hidden causalities among the variables running from the cumulative components not from the natural series, and all the results support the Monetarist view of inflation though the absence of any effect of money supply on economic growth.

Language: English
Page range: 29 - 45
Published on: Sep 2, 2020
Published by: Babeș-Bolyai University
In partnership with: Paradigm Publishing Services
Publication frequency: 3 issues per year

© 2020 Ayad Hicham, published by Babeș-Bolyai University
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.