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Using the Modern Monetary Theory


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 ....

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Jordan- MPs deliberate over draft budget laws


(MENAFN - Jordan Times) AMMAN — The Lower House, headed by Speaker Abdulminem Oddat, and in the presence of Prime Minister and Minister of Defence Bisher Al Khasawneh and Cabinet members, discussed the two draft laws of the general budget and budgets of government units for the fiscal year 2021, the Jordan News Agency, Petra, reported. 
The Parliamentary Finance Committee approved the two bills after discussions over three weeks, deciding to reduce expenditures by JD148 million, in addition to making 16 other recommendations to the government. 
The 2021 budget predicts a 2.5 per cent growth in the economy, and an estimated deficit of JD2.05 billion after counting grants, compared with JD2.1 billion last year. Furthermore, the total expenditures item in the budget amounts to JD9.93 billion, compared with JD9.36 billion last year.  ....

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