Does Policy Interest Rate Have Asymmetric Adjustment: Case Of Jordan
AbstractThis study seeks to test the hypothesis that policy interest rate in Jordan adjusts differently to expansionary versus contractionary monetary policies. The answer highlights on the behavior of the central bank of Jordan (CBJ), and helps to conclude if the CBJ is biased in favor of certain policy. The current study applies threshold autoregressive (TAR) and momentum TAR (MTAR) models. The results show that policy interest rate in Jordan displays symmetric adjustment which supports the idea that the CBJ is not prejudice of either easy or tight monetary policy.
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Bibliographic InfoArticle provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.
Volume (Year): 8 (2008)
Issue (Month): 2 ()
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Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
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