THE IMPACT OF BANK LOANS ON INFLATION IN ALGERIA ECONOMETRIC STUDY FOR THE PERIOD (2007-2022)

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Hayat OTHMANI, Wafa RAMDANI

Abstract

       This study investigates the impact of bank loans, both short and long term, on the inflation rate in Algeria during the period (2007-2022). The study employs measurement and analytical modelling using the Nonlinear Autoregressive Distributed Lag (NARDL) model, concluding that both short and long-term bank loans have a long-term equilibrium relationship with the inflation rate in Algeria. There is asymmetry in the effects of positive and negative shocks of short-term bank loans in the long run, indicating that negative shocks in the Algerian economy have a different and opposite effect compared to positive shocks in the short term. Additionally, there is no symmetry in the impact, and we accept the alternative hypothesis that there is no long-term symmetry, meaning that negative shocks in the Algerian economy have a different and opposite effect compared to positive shocks in the long term.

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