The strategy of economic enterprise to monitor inflation, through the relationship between developments in the money supply and inflation: Case study of Algeria

Authors

  • Amal Dahmani Doctor, University of Médéa, (Algeria), Email: amelkawtar2812@gmail.com
  • Walid Latreche Lecturer (A), University Center of Tipaza, Research Laboratory in Applied Economics for Resources Governance and Territorial Development, (Algeria), Email: latreche.walid@cu-tipaza.dz
  • Abdelhamid Bouabdelli Doctor, University of Algiers3, (Algeria), Email: bouabdelli.abdelhamid@univ-alger3.dz

Keywords:

economic institutions, inflation, money supply, cointegration

Abstract

This research studies the response strategy of economic institutions to inflation, through the relationship between inflation and the money supply. This study relied on the analysis of time series for the study variables in Algeria during the period from 1988 to 2023 and presented the appropriate econometric modeling for the economic relationship between inflation and the money supply using the cointegration test in both the short and long term during this period, utilizing standard analytical methods. The study reached several conclusions, the most important of which is the existence of an impact of inflation on the financial situation of economic institutions, in addition to a causal relationship between inflation and the money supply, as well as the existence of a cointegration relationship between both variables in Algeria during the study period, which requires economic institutions to develop a strategy to study changes in inflation, in response to developments in the money supply.

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References

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Published

18-05-2025

How to Cite

Dahmani, A., Latreche, W., & Bouabdelli, A. (2025). The strategy of economic enterprise to monitor inflation, through the relationship between developments in the money supply and inflation: Case study of Algeria. The International Tax Journal, 52(3), 408–430. Retrieved from https://internationaltaxjournal.online/index.php/itj/article/view/70

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Online Access