The Monetary Transmission Mechanism in Jordan
IMF Working Papers, February 1, 2006
Source details
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- The Monetary Transmission Mechanism in Jordan
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Bibliographic details
- Authors: Tushar Poddar, Hasmik V Khachatryan, Randa Sab
- Published: February 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451863086.001
Methodology
- Approach: vector autoregressive (VAR) approach.
- Central Bank operating target analyzed: real 3-month CD rate.
- Monetary policy measurement used: the spread between the 3-month CD rate and the U.S. Federal Funds rate.
Key findings
- The real 3-month CD rate affects bank retail rates.
- 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.
- No evidence that monetary policy affects output.
- Output responds very little to changes in bank lending rates.
- 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.
Subject and keywords
- Subject: Bank credit, Deposit rates, International reserves, Monetary transmission mechanism, Stock markets
- Keywords: CD rate, interest rate, monetary policy, price, rate, WP