Effectiveness of fiscal policy in Jordan: Impact on growth, poverty and inequality

This study attempts to understand two critical issues regarding effectiveness of fiscal policy in Jordan: (1) the impact of government expenditures on growth, via the size of various fiscal multipliers; and (2) the impact of redistributive fiscal policy on poverty and inequality. The choice of the country is due to several factors: Jordan’s economy is highly volatile to global economic shocks, the monetary policy is not independent due to a pegged exchange rate, and the economy has a high public debt. The combination of global economic downturn and the conflict in the Syrian Arab Republic has significantly affected the economy in terms of overall growth and volatility of growth.

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