Using the Modern Monetary Theory Apr 24,2021 - Last updated at Apr 24,2021 There is an apparent and unnecessary separation of monetary and fiscal policies when it comes to the economic development of Jordan. Monetary policy and its tools are governed by the Central Bank of Jordan (CBJ), which acts independently of the government. The fiscal policy is administered by the Ministry of Finance (MoF) and its tools are government spending, taxation and fees. The CBJ is unable to control inflation since Jordanian imports make up around 60 per cent of the GDP; hence, it focuses on maintaining the JD-US$ peg by maintaining adequate levels of reserves (they are more than adequate already) and an interest rate differential between the US$ and JD deposits. On the other hand, in terms of fiscal tools, spurred by the IMF to use austerity measures (raising taxes and fees, increasing tax collection, and reducing spending) throughout ten IMF so-called reform programmes, and given the lack of fiscal space that the government budget suffers from, the Ministry of Finance cannot cause significant economic growth, never mind development.