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The Impact of Monetary Policy Instruments on GDP and Inflation in the Kingdom of Bahrain Aligned with 2030 Vision |
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PP: 277-321 |
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doi:10.18576/isl/100212
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Author(s) |
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Rajab Ibrahim Ismail,
Ammar Esam Al-Sammarraee,
Nadya Abdul jabbar ALshareeda,
Mohammed Adel Al Araifi,
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Abstract |
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This thesis analyzes the monetary policy tools used by the Central Bank of Bahrain and correlates its impact on GDP and inflation aligned with Bahrain vision 2030. A sample of eight years from 2008 to 2016 is used to produce the results. The statistical analysis analyzes the Variances between the indicators of the independent variable and the Variances of the Dependent Variable to reach results.
The search for monetary policy is concerned with money supply with its three concepts, interest rates and the role it plays in controlling inflation, and the exchange rate policy in the balance of trade and GDP.
The research will explain the gross domestic product, its inputs and causes of variation, and explains inflation, and its causes and consequences.
The study found that at 95% significance believed that monetary policy tools do affect GDP and not inflation.
The researcher recommends a number of recommendations, the most important of which is the need for a study that gives the central bank more flexibility and independence to formulate policies that suit its objectives.
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