The impact of Money Supply and exchange Rate on Gross domestic Product - an empirical Study on the algerian Economy using ARDL for the Period (1990-2021)

Abstract

Abstract: This study is aimed to analyze and measure the impact of both money supply and exchange rate on gross domestic product (GDP) in Algeria during the period (1990-2021), using the Autoregressive Distributed Lag (ARDL) methodology. The study found the existence of a long-term equilibrium relationship between the study variables, and that error correction mechanism exists in the model used, which is characterized by a very strong explanatory po wer. There is also coherence between the estimation results in both the long and short term. Diagnostic tests indicated the absence of standard problems in the model. Keywords: Money supply, exchange rate, gross domestic product (GDP), Autoregressive Distributed Lag (ARDL) methodology