The Impact of Monetary Policy Shocks on the Macroeconomic Variables Jordan Case Study (1990-2020)

This study examined the impact of monetary policy shocks represented by the money supply broad (M2) on economic growth, interest rate, and inflation for the period (1990-2020) in Jordan. The study used various statistical analyses including Unit Root Test, Co-integration Test, and Vector Auto Regression model to test the study hypotheses. The results indicate that the monetary policy shocks represented by the money supply board have a positive and statistically significant impact on both economic growth and inflation in Jordan. Meanwhile, the monetary policy shocks have a negative and statistically significant impact on the interest rate in Jordan. The study recommends that the political and economic decision-makers maintain acceptable rates of money supply because of the growing substantial effect of these variables on the aspect of economic growth.