Interaction between Fiscal and Monetary Policies: Directions of Causality in Case of Jordan 1990-2011

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Hussein Ali Al-Zeaud
Hussein Ali Al-Zeaud
1 Al al-Bayt University

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This paper is an effort to explore the interaction between fiscal and monetary policies in Jordan through investigating the short-term and long-term relationship between government expenditure as a fiscal policy, money supply as a monetary policy, and inflation as a result and cause of these policies. Using annual data for the period 1990-2011, the study applies cointegration test, Granger-causality, and VECM techniques to inspect the long-term and shortterm relationship and the directions of causality, also the speed of adjustment toward long-term equilibrium between the variables.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Hussein Ali Al-Zeaud. 2015. \u201cInteraction between Fiscal and Monetary Policies: Directions of Causality in Case of Jordan 1990-2011\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 15 (GJMBR Volume 15 Issue B2): .

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GJMBR Volume 15 Issue B2
Pg. 19- 26
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: O23
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v1.2

Issue date

May 12, 2015

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English

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This paper is an effort to explore the interaction between fiscal and monetary policies in Jordan through investigating the short-term and long-term relationship between government expenditure as a fiscal policy, money supply as a monetary policy, and inflation as a result and cause of these policies. Using annual data for the period 1990-2011, the study applies cointegration test, Granger-causality, and VECM techniques to inspect the long-term and shortterm relationship and the directions of causality, also the speed of adjustment toward long-term equilibrium between the variables.

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Interaction between Fiscal and Monetary Policies: Directions of Causality in Case of Jordan 1990-2011

Hussein Ali Al-Zeaud
Hussein Ali Al-Zeaud Al al-Bayt university Mafraq-Jordan

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