The Role of Monetary Policy in Achieving the Objectives of Kaldor's Magic Square in Algeria during the Period 1990-2021

Abstract

This study aims to investigate the potential role of monetary policy in achieving the goals of Kaldor's magic square  in Algeria during the period 1990-2021 based on the theoretical proposition that the adoption of an appropriate monetary policy would contribute to the achievement of the overall objectives of economy, This is done by studying the characteristics of the time series of the study variables using unit root, cointegration and causality tests depending on the statistical program eviews.

The study concluded several results, the most important of which is that monetary policy in Algeria during the period (1990-2021) witnessed many economic reforms, but didn't adequately affect any of the four poles of the Kaldor square. Therefore, monetary policy in Algeria during the period under consideration didn't contribute to influencing any of the objectives of macroeconomic policy