The Asymmetric Relationship between the Exchange Rate and Inflation in Algeria from 1980-2022
Keywords:
Inflation, exchange rate, ARDL, NARDL.Abstract
This study deals with estimating the relationship between inflation and the exchange rate in Algeria during the period (1980-2022) using the ARDL method, then studying the non-linear (asymmetric) relationship using the NARDL methodology in the short and long term, while tracking the stability of the functions estimated in the standard model.
The study found that the relationship between the exchange rate and inflation in Algeria is asymmetric in the short and long term through the WALD symmetry test.