فعالية السياسة النقدية في الأردن : تحليل قياسي

Abstract EN

This paper aims to examine the causality relationship between income and money supply and price levels in Jordan in the short-run and long-run using a Vector Error Correction Model (VECM) of quarterly data for the period 1992:01-2014:02.

The results indicate that the relationship between GDP and money supply and the price level have importance in the formulation of monetary policies in Jordan.

The results also indicate that there is a short –run relationship between the wide money supply (M2), gross domestic product (GDP), and the consumer prices index in Jordan.

The study showed that money supply and prices cause the GDP.

Thus, the study recommends that policymakers focus on the expansion of output in the short-run and long-run, and to develop measures to control inflation and to maintain the expansion of production.