Algeria: Selected Issues

Publication Date:

May 18, 2016

Electronic Access:

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Summary:

This paper develops a structural macroeconomic model for Algeria that can help inform the discussion of the policy choices faced by the authorities. The model captures the core dynamics of Algeria’s macro-economy and provides an organizing framework for forecasting and policy analysis that can facilitate an assessment of the optimal policy responses to oil shocks and the implications for macroeconomic stability. This paper also examines Algeria’s main subsidies and proposes reform strategies, drawing on cross-country experiences, and discusses the channels through which a prolonged period of low oil prices may affect the banking sector, together with the policies needed to mitigate emerging financial stability risks.

Series:

Country Report No. 2016/128

Subject:

English

Publication Date:

May 18, 2016

ISBN/ISSN:

9781484358351/1934-7685

Stock No:

1DZAEA2016002

Pages:

67

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