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http://dx.doi.org/10.13106/jafeb.2022.vol9.no9.0039

The Effectiveness of Monetary Policy in Fostering Investment in Jordan during the Period 1992-2020  

ALNABULSI, Zaynab Hassan (Faculty of Business, Al-Balqa Applied University)
ALRAWASHDEH, Salah Turki (Faculty of Business, Al-Balqa Applied University)
LUTFI, Khalid Munther (World Islamic Sciences and Education University)
SALAMEH, Rafat Salameh (Faculty of Business, Al-Balqa Applied University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.9, 2022 , pp. 39-47 More about this Journal
Abstract
This study explored the effectiveness of the measures taken by the Jordanian Central Bank embedded in its monetary policy in encouraging banks to support investment. It aimed to explore the impact of this monetary policy on supporting credit-related decisions and the monetary policies that aim to support investment in Jordan. The targeted tools of the monetary policy are: (Overnight Deposit Window Rate, money supply, and exports). The researchers carried out an analysis to measure the effectiveness of the monetary policy in fostering investment in Jordan during the period 1992-2020. They carried out the time series analysis. They explored the stationarity of the time series. They used the ARDL model. It was found that the Overnight Deposit Window Rate has a negative significant effect on the gross fixed capital formation. It was found that the money supply has a positive insignificant effect on gross fixed capital formation. The researcher recommends using Overnight Deposit Window Rate in a manner that is consistent with the intended investment-related goals.
Keywords
Monetary Policy; Investment; Gross Fixed Capital Formation; Overnight Deposit Window Rate; Money Supply;
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Times Cited By KSCI : 3  (Citation Analysis)
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