Towards Adopting Inflation Targeting: The Credibility and Limitations of Monetary Policy Under The Fixed Exchange System: The Case of Jordan
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comunitat-uji-handle2:10234/8643
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INVESTIGACIONMetadata
Title
Towards Adopting Inflation Targeting: The Credibility and Limitations of Monetary Policy Under The Fixed Exchange System: The Case of JordanDate
2020-05-01Publisher
WileyISSN
0378-5920; 1467-9701Bibliographic citation
ABU ASAB, Nora; CUESTAS, Juan Carlos. Towards Adopting Ination Targeting: The Credibility and Limitations of Monetary Policy Under The Fixed Exchange System: The Case of Jordan. The World Economy, 2020Type
info:eu-repo/semantics/articlePublisher version
https://onlinelibrary.wiley.com/doi/abs/10.1111/twec.12964Version
info:eu-repo/semantics/acceptedVersionSubject
Abstract
In this paper the interest rate pass through is examined within its intermediate lag of action to shed light on the credibility of monetary policy in
Jordan, where the reputation of low inflation is imported through ... [+]
In this paper the interest rate pass through is examined within its intermediate lag of action to shed light on the credibility of monetary policy in
Jordan, where the reputation of low inflation is imported through a fixed exchange rate system to the U.S dollar. We use time series methods which allow
us to test for asymmetric adjustment. The results are compared to that of
two inflation targeting countries at time proceeding building the credibility
of price stability domestically: New Zealand and the UK. The empirical findings suggest that the interest rate pass-through in Jordan is weak and slow.
In addition, our results indicate the existence of non-competitive pricing behaviour in the market. Comparing the results to the two inflation targeters,
the study suggests that Jordan needs to move to a more resilient exchange
rate arrangement. [-]
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The World Economy, 2020Rights
"This is the peer reviewed version of the following article: ABU ASAB, Nora; CUESTAS, Juan Carlos. Towards Adopting Ination Targeting: The Credibility and Limitations of Monetary Policy Under The Fixed Exchange System: The Case of Jordan. The World Economy, 2020, which has been published in final form at https://doi.org/10.1111/twec.12964. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions."
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