The monetary policy instruments and inflation, analysis with a structural break: an application to Algeria

Abstract

This paper aims to study the development of inflation in the Algerian economy through monetary policy in addressing this phenomenon, and the data includes annual data covering the period from 1970 to 2019., based on macroeconomic variables which expose the relationship between the inflation and  monetary policy instruments , the econometric study based on structural break cointegration ,  using  a structural break tests such as  Zivot and Andrews(1992) and  Gregory-Hansen(1996) to estimate this relationship we used the cointegration methods “ FMOLS, DOLS, CCR” these estimation methods  had allowed us to note that the treatment of inflation in Algeria is not based not  only on monetary tools