Overview -- Replacing bank credit to loss-making public enterprises with temporary budget subsidies in the context of a restructuring program -- Determinants of inflation in Algeria
Summary
Algeria remains heavily dependent on the hydrocarbon sector and still maintains a sizable and inefficient state-owned enterprise sector. Against this background, the paper addresses two different issues with important implications for macroeconomic stability in Algeria. The paper proposes the replacement of directed credit to large loss-making public enterprises with temporary and explicit budget subsidies. It also shows that money, volume of imports, and weather conditions have a strong impact on price movements in the short term, whereas the exchange rate has none
Notes
"Prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country."
"February 2004"--Cover
"Prepared by Michel Lazare, Philippe Callier, Taline Koranchelian, and Holger Flörkemeier."
