New model predicts economic fluctuations in Algeria with monetary policy.
The article describes a new model for understanding Algeria's economy, focusing on how prices and wages affect economic fluctuations. By using a specific monetary policy called the Taylor rule, the researchers were able to analyze the impact of different shocks on key economic variables like GDP, prices, and employment. The model was calibrated to closely match real-world data, allowing for a better understanding of how the Algerian economy behaves in response to various factors.