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The Impact of Monetary policy on Consumption and Investment in Jordan during (1989-2013)

Journal of Economics Library

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Title The Impact of Monetary policy on Consumption and Investment in Jordan during (1989-2013)
 
Creator KHASAWNEH, Malik Qasim; Assistant Professor
Taibah University- Kingdom of Saudi Arabia
Economic and finance Division
 
Description Abstract. Monetary policy is one of the important monetary subjects that can evaluate the performance of the policy and its tools, recent development in financial markets in the past years led to changes in the behavior of countries monetary policies, concentrated to achieve stability in the price level by creating new ideas of how monetary policy affects the economy and its components through linking macroeconomic activities (private spending components) with nominal interest rate. This study aims to analyze and evaluate the impact of Jordanian monetary policy on consumption and investment spending during the period (1989-2013) to predict the impact of monetary policy and its instruments on real economic activities and inflation. The study finds that lending rate affects investment negatively but it does not affect consumption and real GDP in the short run. However, in the long run investment is affected by the co-movements occurred in consumption lending rate and lagged investment. Also, the study finds that real GDP is affected by the co- movements that occurred in real GDP and lending rate. Furthermore, domestic credit is affected by the co-movements that happened in domestic credit and lending rate.Keywords. Consumption, Error correction model, Investment, Lending rate, Monetary policy.JEL. E20, F22, O23.
 
Publisher Journal of Economics Library
 
Contributor —
 
Date 2015-09-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEL/article/view/407
10.1453/jel.v2i3.407
 
Source Journal of Economics Library; Vol 2, No 3 (2015): September; 155-164
2149-2379
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEL/article/view/407/490
 
Rights Copyright (c) 2015 Journal of Economics Library
http://creativecommons.org/licenses/by-nc/4.0