ISSN: 2265-6294

The Effectiveness of Fiscal and Monetary Policies: New Evidence from The Jordanian Economy Using ARDL Techniques

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Jumah Ahmad. Alzyadat

Abstract

The study tries to investigate the relative effectiveness of fiscal and monetary policies in the Jordanian economic growth process, based on the St. Louis equation modified for annual data during the period )1970 –2020 (. The study uses Autoregressive Distributed Lag (ARDL) techniques, to verify the existence of long- and short-run effects of monetary and fiscal policies on the Jordanian economy. The results showed that government expenditures as a representative of fiscal policy are greater and faster in enhancing the stability of the Jordanian economy than the money supply as a representative of the monetary policy.

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