The Impact of Federal Fund Rate in U.S.A. Movements on Lending Rates and Consumer Price Index in Jordan

Authors

  • Malik Qasim Khasawneh Taibah University

DOI:

https://doi.org/10.15549/jeecar.v3i1.117

Keywords:

Consumer Price Index (CPI), Federal Fund Rate, Lending Rate, Vector Error Correction Model (VECM).

Abstract

This study measures the impact of the federal fund rate on the lending rate and the consumer price index in Jordan during the period 1994-2013, relying on monthly data. The study finds that common changes that occur in the U.S. federal fund rate lead to direct changes in the lending rate in Jordan, and these changes are statistically significant. The study also finds that the changes in the U.S. federal fund rate lead to direct changes also in the consumer price index and these changes also are statistically significant.

Author Biography

Malik Qasim Khasawneh, Taibah University

Dr. Malik Khasawneh is an Assistant Professor of Economics in the college of Business administration at Taibah University in Al Medina Al Monawara in Kingdom of Saudi Arabia (KSA). He received his Ph.D. degree in Economics from the University of Jordan-Kingdom Hashemite of Jordan in 2011, with the specialization in Economics. His teaching and research capabilities encompass topics in international economics, monetary economics with the focus on international reserves determinations in transition economies. His outstanding paper "Oil Prices, Economic Growth and International Reserves: Evidence from Middle-Eastern and African Oil-Importing Countries during the Period (2000-2013)" was published in the Australian Journal of Business and Management Research in July 2015.

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Published

2016-04-06

How to Cite

Khasawneh, M. Q. (2016). The Impact of Federal Fund Rate in U.S.A. Movements on Lending Rates and Consumer Price Index in Jordan. Journal of Eastern European and Central Asian Research (JEECAR), 3(1), 11. https://doi.org/10.15549/jeecar.v3i1.117

Issue

Vol. 3 No. 1 (2016): Journal of Eastern European and Central Asian Research

Section

Manuscripts

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