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The Monetary Transmission Mechanism in Jordan

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 F...

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Bibliographic Details
Main Author: Poddar, Tushar
Other Authors: Khachatryan, Hasmik, Sab, Randa
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2006
Series:IMF Working Papers
Subjects:
Interest Rates
Foreign Exchange Reserves
Credit
Stock Exchanges
Finance
Monetary Economics
Monetary Policy, Central Banking, And The Supply Of Money And Credit: General
General Financial Markets: General (includes Measurement And Data)
Deposit Rates
Stock Markets
International Reserves
Banks And Banking
Bank Credit
Monetary Policy
Banking
Interest Rates: Determination, Term Structure, And Effects
Money And Monetary Policy
Finance: General
Monetary Transmission Mechanism
Jordan
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary: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
Physical Description:28 pages
ISBN:9781451863086

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