Economics, Econometrics and Finance
4 years ago

Algeria's Capital Spending Could Lead to Real Appreciation Concerns

IMF Working Paper
Buoyant Capital Spending and Worries Over Real Appreciation: Cold Facts From Algeria
Oumar Diallo, Boileau Loko, Kangni Kpodar

Paper Summary

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The government of Algeria has been spending more money on public projects due to higher oil prices. This spending has a small effect on making the country's money worth more. However, if the government keeps spending on things like maintenance, the money could become even more valuable in the long run. Algeria needs to think about how its spending will affect the value of its money.