The Government of Algeria has pursed a relatively expansionary fiscal policy in recent years, thanks to rising oil … non-tradable goods - thereby causing a higher real appreciation. This implies that Algeria should carefully consider the …

The Government of Algeria has pursed a relatively expansionary fiscal policy in recent years, thanks to rising oil …-mostly nontradable goods-thereby causing a higher real appreciation. This implies that Algeria should carefully consider the implications …

Given the tendency of the oil sector to appreciate the equilibrium real exchange rate (RER) in Algeria, trade … in trade protection would depreciate the RER in Algeria, which in turn would improve competitiveness of, and incentives … to invest in, non-oil exports. The paper then discusses existing levels of protection in Algeria and directions for …

Drawing on the existing literature, I estimate a long-run equilibrium real exchange rate path for Algeria. I find that … rate in Algeria. The half-life of the deviation of the real exchange rate from the estimated equilibrium level is about …-varying long-run equilibrium exchange rate in Algeria as in other commodity-exporting countries; and (ii) the real effective …

Given the tendency of the oil sector to appreciate the equilibrium real exchange rate (RER) in Algeria, trade … in trade protection would depreciate the RER in Algeria, which in turn would improve competitiveness of, and incentives … to invest in, non-oil exports. The paper then discusses existing levels of protection in Algeria and directions for …