Paper Title
The Effect of Interest Rate Policy on Inflation and Real Growth of Jordan Economy

Abstract
The paper aims at investigating the effect of interest rate policy on inflation and read growth of Jordan over the period 1997-2022. An annual time series data is used in the study. The VECM methodology is employed. The VECM estimation results show that changes in interest rate policy have a statistically significant and negative impact on real growth and inflation over the period of the study. A one percentages increase in interest rate is associated with a 1.49 percentage point decrease in the real growth, Also, the study show that a one percentage increase in interest rate is associated with 0.67 percentage point decrease in inflation. The study findings are consistent with economic theory and with previous empirical studies.