MODERN MONETARY POLICIES AND FINANCIAL STABILITY: INSIGHTS FROM THE BANK OF ALGERIA AND LEADING CENTRAL BANKS

Abstract

This article examines the evolution of modern monetary policies and their impact on financial stability, with a focus on the Bank of Algeria in comparison to leading central banks worldwide. By analyzing policy frameworks, interest rate management, inflation targeting, and liquidity interventions, the study highlights similarities and differences in central bank strategies. Particular attention is given to the adaptation of unconventional monetary tools in response to global economic uncertainties, such as inflation shocks, currency fluctuations, and financial crises. The paper argues that while the Bank of Algeria faces unique structural and economic challenges, lessons from international practices can guide policy reforms and strengthen the resilience of the national financial system.