WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 22, 2025
The Impact of Monetary Policy Shocks on the Macroeconomic Variables Jordan Case Study (1990-2020)
Authors: , , ,
Abstract: This study examined the impact of monetary policy shocks represented by the money supply broad (M2) on economic growth, interest rate, and inflation for the period (1990-2020) in Jordan. The study used various statistical analyses including Unit Root Test, Co-integration Test, and Vector Auto Regression model to test the study hypotheses. The results indicate that the monetary policy shocks represented by the money supply board have a positive and statistically significant impact on both economic growth and inflation in Jordan. Meanwhile, the monetary policy shocks have a negative and statistically significant impact on the interest rate in Jordan. The study recommends that the political and economic decision-makers maintain acceptable rates of money supply because of the growing substantial effect of these variables on the aspect of economic growth.
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Pages: 1173-1182
DOI: 10.37394/23207.2025.22.95