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La relation entre le taux de change parallèle et la demande de la monnaie Cas de l’Algérie durant 1980-2010: Une approche économétrique
[The relationship between the parallel exchange rate and demand for money Case of Algeria during 1980-2010: An econometric approach]

Author

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  • BENDOB, Ali
  • SI MOHEMMED, Kamel
Abstract
The main objective of this study is to analyze the relationship between the exchange rate and the parallel circulation of money (M1) in Algeria during the period 1980-2010. For this purpose, we use the proposed especially by Pesaran et al ARDL model. (2001). the results confirm the convergence of long-term determinants of the demand for money (income, consumption price index, interest rate deposits, the parallel exchange rate). In addition, the CUSUM test and CUSUMSQ clearly show the stability of the long-term relationship during the estimation period between the parallel exchange rate and demand for the currency in Algeria. Instead, the relationship becomes unstable once we use the official exchange rate.

Suggested Citation

  • BENDOB, Ali & SI MOHEMMED, Kamel, 2014. "La relation entre le taux de change parallèle et la demande de la monnaie Cas de l’Algérie durant 1980-2010: Une approche économétrique [The relationship between the parallel exchange rate and dema," MPRA Paper 76085, University Library of Munich, Germany, revised 2014.
    • Handle: RePEc:pra:mprapa:76085
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Demand for the currency; the parallel exchange rate; the ARDL model; the CUSUM test and CUSUMSQ; the Algerian economy.;
    All these keywords.

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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