The impact of monetary policy on foreign reserves : MABP approach
Other Title(s)
أثر السياسة النقدية على الاحتياطيات الأجنبية : المنهج النقدي لميزان المدفوعات
Joint Authors
al-Bashir, Ala Abd al-Hafiz
Mallawi, Ahmad Ibrahim
Source
Jordan Journal of Economic Sciences
Issue
Vol. 3, Issue 2 (31 Dec. 2016), pp.193-216, 24 p.
Publisher
University of Jordan Deanship of Academic Research (DAR)
Publication Date
2016-12-31
Country of Publication
Jordan
No. of Pages
24
Main Subjects
Financial and Accounting Sciences
Topics
- Economic conditions
- Monetary policy
- Balance of payments
- Jordan
- Twenty-first century
- Twentieth century
- Foreign exchange reserves
Abstract EN
This paper aims to investigate the short and long-run impacts of monetary policy on Jordanian foreign reserves for the period (1980-2012) in the context of the monetary approach to the balance of payments (MABP) and the reserve-flow equation.
In doing so, the autoregressive distributed lag (ARDL) bounds testing approach of cointegration is employed.
The empirical results of the bounds testing approach have revealed the existence of a long-run relationship among foreign reserves, determinants of money demand, and the broad definition of money, M2.
Moreover, the long-run parameters of the model came in line with the theoretical propositions of the monetary approach since money supply has a negative and statistically significant impact on foreign reserves, while domestic income and domestic price have positive and statistically significant impacts on foreign reserves.
Domestic interest rate has a negative and statistically significant impact on foreign reserves, which is consistent with the MABP approach.
American Psychological Association (APA)
al-Bashir, Ala Abd al-Hafiz& Mallawi, Ahmad Ibrahim. 2016. The impact of monetary policy on foreign reserves : MABP approach. Jordan Journal of Economic Sciences،Vol. 3, no. 2, pp.193-216.
https://search.emarefa.net/detail/BIM-817218
Modern Language Association (MLA)
al-Bashir, Ala Abd al-Hafiz& Mallawi, Ahmad Ibrahim. The impact of monetary policy on foreign reserves : MABP approach. Jordan Journal of Economic Sciences Vol. 3, no. 2 (2016), pp.193-216.
https://search.emarefa.net/detail/BIM-817218
American Medical Association (AMA)
al-Bashir, Ala Abd al-Hafiz& Mallawi, Ahmad Ibrahim. The impact of monetary policy on foreign reserves : MABP approach. Jordan Journal of Economic Sciences. 2016. Vol. 3, no. 2, pp.193-216.
https://search.emarefa.net/detail/BIM-817218
Data Type
Journal Articles
Language
English
Record ID
BIM-817218