European Parliament Library

The Monetary Transmission Mechanism in Jordan, Tushar Poddar, Hasmik Khachatryan, Randa Sab

Abstract
This paper examines monetary transmission in Jordan using the vector autoregressive approach. We find that the real 3-month CD rate, the Central Bank's operating target, affects bank retail rates and that monetary policy, measured by the spread between the 3-month CD rate and the U.S. Federal Funds rate, is effective in influencing foreign reserves. We do not find evidence of monetary policy affecting output. Output responds very little to changes in bank lending rates. Furthermore, equity prices and the exchange rate are not significant channels for transmitting monetary policy to economic activity. The effect of monetary policy on the stock market seems insignificant
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. CHANNELS OF MONETARY TRANSMISSION""; ""III. CONDUCT OF MONETARY POLICY IN JORDAN""; ""IV. EVIDENCE FROM VARS""; ""V. CONCLUSIONS AND POLICY IMPLICATIONS""; ""IMPULSE RESPONSES""; ""GRANGER CAUSALITY TESTS SUMMARY""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
"February 2006."
Physical Description
1 online resource (28 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9780145190842

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