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Does Inflation Harm Economic Growth in Jordan?. An Econometric Analysis for the Period 1970-2000


  • Sweidan, O.D.


It is expected that inflation we will be an important issue in Jordan because the central bank of Jordan is adopting an easy monetary policy to help promoting the financial market.Therefore, this paper explores the relation between inflation and economic growth to check whether if this relation has a structural breakpoint effect or not.This paper shows that the structural breakpoint effect occurs at inflation rate equal to 2% and after this level the effect turns to be negative. This result says that the maneuver of the monetary policy will be very limited. And, the central bank of Jordan should pay attention to the inflation phenomenon while conducting the new monetary policy.

Suggested Citation

  • Sweidan, O.D., 2004. "Does Inflation Harm Economic Growth in Jordan?. An Econometric Analysis for the Period 1970-2000," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 1(2), pages 41-66.
  • Handle: RePEc:eaa:ijaeqs:v:1:y2004:i:1_9

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    References listed on IDEAS

    1. Crawford, A & Kasumovich, M, 1996. "Does Inflation Uncertainty Vary with the Level of Inflation?," Staff Working Papers 96-09, Bank of Canada.
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    13. Maghyereh, Aktham, 2003. "External Debt and Economic Growth in Jordan: the Threshold Effect," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 56(3), pages 337-355.
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    Cited by:

    1. Nicas Yabu & Nicholaus J. Kessy, 2015. "Appropriate Threshold Level of Inflation for Economic Growth: Evidence from the Three Founding EAC Countries," Applied Economics and Finance, Redfame publishing, vol. 2(3), pages 127-144, August.
    2. Phiri, Andrew, 2013. "Inflation and Economic Growth in Zambia: A Threshold Autoregressive (TAR) Econometric Approach," MPRA Paper 52093, University Library of Munich, Germany.
    3. Ahortor, Christian R.K. & Adenutsi, Deodat E., 2009. "Inflation, capital accumulation and economic growth in import-dependent developing countries," MPRA Paper 29353, University Library of Munich, Germany, revised 2010.
    4. Rufin-Willy Mantsie, 2012. "In Search of Inflation Rate Compatible with Growth Target in CEMAC Countries," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(4), pages 329-350.

    More about this item


    Inflation; Economic Growth; Jordan; Arch Models;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation


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