|
|
|
|
|
|
Author/Editor:
|
Maziad, Samar
|
|
|
|
|
|
Publication Date:
|
September 01, 2009
|
|
|
|
Electronic Access:
|
Free Full text
(PDF file size is 1,040KB).
Use the free
Adobe Acrobat Reader
to view this PDF file
|
|
|
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
|
|
|
|
|
Summary:
The Central Bank of Jordan (CBJ) and its operational independence changed over time in line with the evolution of the monetary policy framework and as a result of the currency crisis in the late 1980s. The paper examines the developments of the CBJ, its independence in conducting monetary policy and the various instruments at its disposal, with special focus on the certificates of deposit (CDs) market, the main monetary policy instrument, and the treasury bill market. The paper also examines the issue of the autonomy of monetary policy in Jordan given the influence of world interest rates. Although, Jordan operates an exchange rate peg, which has been fixed to the USD since 1995, there is some room for flexibility in operating monetary policy in the short-run, where the CBJ has some autonomy in determining the spread between domestic and US interest rates. VAR and VECM results suggest that the response of the policy rate in Jordan to innovations in the US Federal Fund's rate is less than one-for-one. In the short-run, the CBJ appears to conduct monetary policy in response to domestic inflation and a measure of the domestic output gap.
|
|
|
|
Order a print copy
|
|
|
|
|
|
Series:
|
Working Paper No. 09/191
|
|
|
|
|
|
Subject(s):
|
Central bank autonomy | Central bank role | Central banks | Economic models | Exchange rate regimes | Jordan | Monetary policy | Monetary policy instruments
|
|
|
Author's Keyword(s):
|
Jordan | Monetary policy | Central bank independence |
|
|
|
|
|
|
|
|
|
|
English
|
|
|
|
|
|
|
Publication Date:
|
September 01, 2009
|
|
|
|
|
|
|
|
Format:
|
Paper
|
|
Stock No:
|
WPIEA2009191
|
|
Pages:
|
29
|
|
Price:
|
|
|
|
US$18.00 )
|
|
|
|
|
|
|
|
|
Please address any questions about this title to
publications@imf.org
|
|
|
