<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The objective of this study is to measure the impact of financial liberalization on the effectiveness of monetary policy in Algeria during the period 1970-2021 using the Autoregressive Distributed Gaps (ARDL) model and analyzing the implications of the financial liberalization policy on the monetary delivery channels as well. In the context of the liberalization of the financial sector, both channels of the exchange rate and financial assets play an effective role in transferring the impact of monetary policy to the real sector compared to the channels of interest rate and bank lending, with central banks relying on the use of indirect tools that depend on market forces to manage their monetary policy. The results of the study also concluded that the policy of financial liberalization represented in loans granted to the private sector as a percentage of GDP positively affects the effectiveness of monetary policy and enhances its ability as a tool to direct the economy towards achieving the goal of economic growth.</p>
</abstract>

The objective of this study is to measure the impact of financial liberalization on the effectiveness of monetary policy in Algeria during the period 1970-2021 using the Autoregressive Distributed Gaps (ARDL) model and analyzing the implications of the financial liberalization policy on the monetary delivery channels as well. In the context of the liberalization of the financial sector, both channels of the exchange rate and financial assets play an effective role in transferring the impact of monetary policy to the real sector compared to the channels of interest rate and bank lending, with central banks relying on the use of indirect tools that depend on market forces to manage their monetary policy. The results of the study also concluded that the policy of financial liberalization represented in loans granted to the private sector as a percentage of GDP positively affects the effectiveness of monetary policy and enhances its ability as a tool to direct the economy towards achieving the goal of economic growth.

The Impact of Financial Liberalization on the Effectiveness of Monetary Policy in Algeria

Management Dynamics in the Knowledge Economy

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The objective of this study is to measure the impact of financial liberalization on the effectiveness of monetary policy in Algeria during the period 1970-2021...

The Impact of Financial Liberalization on the Effectiveness of Monetary Policy in Algeria

Published Online: Apr 05, 2023

Page range: 63 - 83

Received: Oct 18, 2022

Accepted: Feb 08, 2023

DOI: https://doi.org/10.2478/mdke-2023-0005

Keywords
financial liberalization, monetary policy channels, economic growth, ARDL model

© 2023 Rabia Benarbia et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Impact of Financial Liberalization on the Effectiveness of Monetary Policy in Algeria

Published Online: Apr 05, 2023

Page range: 63 - 83

Received: Oct 18, 2022

Accepted: Feb 08, 2023

DOI: https://doi.org/10.2478/mdke-2023-0005

Keywordsfinancial liberalization, monetary policy channels, economic growth, ARDL model

© 2023 Rabia Benarbia et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
financial liberalization, monetary policy channels, economic growth, ARDL model