Algeria's Monetary Policy Faces Urgent Reconsideration After Unstable Money Demand Study.
Algeria's monetary policy needs a rethink due to economic challenges. A study on money demand stability was done for 1979-2019. The demand for money in Algeria is stable for M1 and M2, but not for cash. Factors like inflation, interest rates, and exchange rates affect money demand. The informal economy plays a big role in cash demand. The findings suggest adjustments are needed for Algeria's monetary policy.