IMF Staff Country Reports

Algeria : Selected Issues

Author/Editor:

International Monetary Fund. Middle East and Central Asia Dept.

Publication Date:

February 5, 2014

Electronic Access:

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Summary:

This Selected Issues paper explores the monetary policy transmission channels in Algeria and analyzes available options to strengthen monetary policy effectiveness. High liquidity has been the hallmark of the Algerian monetary policy framework for most of the 2000s. The paper assesses the impact of monetary policy changes on its final targets—growth and inflation, and outlines policy options to strengthen the efficacy of monetary policy. It takes stock of Algeria’s current fiscal framework, and discusses options and strategies for a revised fiscal framework. Key principles for managing natural resource funds are also described.

Series:

Country Report No. 14/34

Subject:

Algeria Exchange rate depreciation Fiscal policy Global competitiveness Hydrocarbons Monetary policy Monetary transmission mechanism Nonoil sector Real effective exchange rates Selected issues