The Relationship Between Oil Price, Exchange Rate And Money Supply: Case Of Algeria

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Date

2018-12-30

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Université de M'sila

Abstract

This study aimed to investigate the relationship between oil price, exchange rate and money supply in order to determine whether the last one may be affected, mainly, by reducing exchange rate to cover the decrease of oil income. The principal statistical method used in the study is Auto-Regressive Distribution Lags model. The study concluded that it is very important to control the three variables in order to take the best decisions aiming, as much as possible, to cover the public expenditure and cut down the inflation rate that can be recorded

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Keywords

oil price, exchange rate, money supply, inflation

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