The Monetary Transmission Mechanism in Jordan

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Price:  $15.00

Author/Editor: Tushar Poddar, Hasmik Khachatryan, Randa Sab
Release Date: © February, 2006
ISBN : 978-1-45186-308-6
Stock #: WPIEA2006048
Stock Status: Available

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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.


Economic policy , Monetary policy

More publications in this series: Working Papers

More publications by: Tushar Poddar ; Hasmik Khachatryan ; Randa Sab