Monetary Policy's Impact on Jordanian Economic Growth: Long and Short-Term Effects for the Period (1990 – 2021)

Objectives: This study aims to examines how monetary policy affects Jordan's economic growth in the long and short term The study incorporates the time series data from 1990 to 2021. Methods: To examine the impacts of monetary policy on economic growth measures, such as GDP, this study used the Autoregressive Distributive Lag (ARDL) and Vector Error Correction (VEC) models. The independent variables are the real interest rate, inflation rate, and broad money supply as monetary policy indicators. Results: The current study shows that monetary policy (real interest rate, inflation rate, and broad money supply) has positive significant implications that impact Jordanian economic growth in both the short and long term. Furthermore, the data demonstrate a bidirectional link between monetary policy and Jordanian economic growth in both the long and short term. Conclusion: The monetary policy has a positive significant impact on Jordanian economic growth measures (real interest rate, inflation rate, and broad money supply).