The Narrow and Expanded Money Supply and its Impact on Interest Rate and Product of the Private Sector in Jordan During the Period (1990-2019)

• Autorzy: Fedel Mayuf Al-Habashneh
• Języki publikacji: EN

Abstrakty

EN

This study aims to measure the effect of money supply on the rate of interest and gross domestic product (GDP) of the private sector in Jordan and show the effect of money supply on domestic product in order to determine the effect nature of narrow and expanded money supply of Jordanian economy. The study uses a fully modified ordinary least squares (FM-OLS) method depending on time data for the period (1990-2019). The results of the estimation show that there is a positive significant effect of narrow money supply on real GDP of the private sector. In addition, it shows that there is a negative significant effect of real interest rate on GDP of the private sector. Also, it shows that there is a statistical insignifi****cant effect of real domestic savings on real domestic product(original abstract)

Słowa kluczowe

EN

Interest rate; Private sector; Money supply

PL

Stopa procentowa; Sektor prywatny; Podaż pieniądza

• Czasopismo: Foundations of Management
• Rocznik: 2022
• Tom: 14
• Numer: nr 1
• Strony: 143--154

Twórcy

autor

Fedel Mayuf Al-Habashneh

• Mutah University, Economics and Business Administration College, Economics Business & Finance Department, JORDAN

Bibliografia

• Abudlou, I., 2010. The Effect of Money Supply on Production and Price Level in Jordan from 1990- 2010. Master's thesis. Yarmouk University. Irbid, Jordan.
• Al-Anazi, F., 2004. The Impact of the Growth of Money Supply on the Growth of the Private Sector in the Kingdom of Saudi Arabia. Master's thesis. King Saud University. Saudi Arabia.
• Al-Suwaidi, Seif Al-Din, 1995. Money Supply in the State of Qatar: An Analytical Study of the Determinants of the Money Supply Multiplier. Journal of Social Sciences, Vol 23, Issue 1, Spring.
• Athukorala, P.C., Riedel, J., 1996. Modelling NIE Exports: Aggregation, Quantitative Restrictions and Choice of Econometric Methodology. Journal of Development Studies, Vol. 33, No.1, pp.81- 98.
• Central Bank of Jordan (various issues), Bulletins and Reports, Amman, Jordan.
• Central Bank of Jordan, Research and Studies Department, 1983. Monetary and Banking Policy in Jordan- Thoughts and Observations. April 1983.
• El Nakeeb, A., 2021. The Effectiveness of the Interest Rate Policy in the Egyptian Economy (1980-2019). Journal of Economic Development and Policies, Vol. 23. No. 1. ISSN: 1561-0411. Jan 2021. The Arab Planning Institute - Kuwait.
• Friedman, B., Kuttner, K., 1992. Money, Income, Price and Interest Rates. American Economic Review, Vo1. 81, No. 3, June,1992, pp.472-492.
• Githinji, A.N., 2015. The Effect of Interest Rate Volatility on Money Demand in Kenya. A Master of Arts Dissertation in Economics, School of Economics, University of Nairobi.
• Greene, W.H., 1993. Econometric Analysis. 2nd Edition, Englewood Cliffs, Prentice Hall,
• Gujarati, D.N., 2003. Basic Econometrics. 4th Edition, McGraw-Hill, New York.
• Husain, F., Abbas, K., 2000. Money, Income, Prices and Causality in Pakistan: A Trivariate Analysis. The Pakistan Development Review, Research Report No. 178(2000).
• Jamal, Q.M., 2018. The Impact of Monetary and Fiscal Policy on Economic Growth in the Arab Countries. Arab Monetary Fund.
• Khreisat, M., 1993. The Impact of Money Supply on the real Amounts in the Jordanian Economy. Master Thesis. Yarmouk University. Irbid, Jordan.
• Maddala, G., Kim, I.M., 1998. Unit Roots, Cointegration and Structural Change. Cambridge University Press.
• [16] Nasser, M., 1991. Monetary Policy in Jordan During the period from 1970 to 1988, Its Concept, Tools and Impact on Economic Activity, Master's thesis. University of Jordan. Amman Jordan.
• Olweny, T., Chiluwe, M., 2012. The Effect of Monetary Policy on Private Sector Investment in Kenya. Journal of Applied Finance & Banking, Vo1. 2, pp.239-287, ISSN:1792-6580.
• Onuorah, C.A., Shaib, I.O., Oyathelemi, E., Friday, O.I., 2011. The Impact of Monetary Policy on Micro-Economy and Private Investment in Nigeria. Research Journal of Finance and Accounting, Vo1. 2, No. 6, pp.65-75.
• Philips, P., Hansen, B., 1990. Statistical Inference in Instrumental Variables Regression with I (1) Processes. The Review of Economic Studies, 57, pp.99-125.
• Psaradakis, Z., Ravn, M., Sola, M., 2005. Markkov Switching Causality and the Money-Output Relationship. Journal of Applied Econometrics, Vol. 20, Issue 5, pp.665-683

Identyfikatory

DOI

10.2478/fman-2022-0009