In order to enlighten the Algerian people about the means proposed by the Algerian Government to « counter » the economic crisis experienced by Algeria, and to remove any ambiguity about the use of the printing press, I contacted the eminent economist, Dr. Paul Craig Roberts who was Economic Advisor to President Reagan and Undersecretary of the Treasury in the Reagan administration in the early 1980s, and who became known as one of the founding fathers of the Reaganomics particularly by his contribution to the reform of the « Tax Act » of 1981. Algeria’s Prime Minister Ahmed Ouyahia said recently that Algeria will resort to the printing press to « palliate » the acute economic crisis that Algeria lives following the collapse of the price of the oil barrel, not hesitating to venture on a subject he does not master by giving the example of the USA and Japan. So I asked spontaneously and quickly the opinion of Dr. Roberts regarding the option of printing money. Dr. Roberts, who knows what he is talking about, has confessed to me that although he does not know the economy of Algeria: “Unfortunately, I am not familiar with Algeria’s economy and cannot assess what the result would be there.” explained to me: “So, the answer to your question is that it depends on a number of factors.
Dr. Roberts told me that this process has been effectively used in the United States. He said to me: “The effect of printing money seems to depend on what is done with it and how it enters the economy. The US, for example, has printed a huge amount of money over the past 10 years. Instead of going into the consumer economy and driving up prices, the money has gone into financial instruments, driving up the prices of bonds and stocks. If a country has resources, it can create money with which to develop the resources and not have to rely on foreign loans. If the country’s currency is traded internationally, the country would face the risk that money creation would result in markets speculating against the country’s currency and driving down its exchange value. This would be very costly if the country is dependent on imports.”
Already by comparing the Algerian « economy » totally dependent on hydrocarbons and imports and which produces nothing, with the American and Japanese economies, Prime Minister Ouyahia is totally mistaken. One might even say that he is blaspheming. The use of printing money could be a perilous adventure for Algeria because, in the opinion of Dr. Roberts, countries dependent on imports can only expect major problems. Prime Minister Ouyahia has therefore chosen the easy solution and the printing press is not a means that will solve the economic problems that Algeria lives. On the contrary, it is likely to sink the country that is going through the worst moments of its history.
Published in American Herald Tribune: https://ahtribune.com/world/africa/1917-printing-money-algeria.html
In Palestine Solidarité: http://www.palestine-solidarite.org/analyses.mohsen_abdelmoumen.220917.htm