MEASURE THE IMPACT OF MONETARY POLICY ON ECONOMIC GROWTH IN SUDAN FOR PERIOD 1970-2018
The objective of this study was to measure the impact of Monetary Policy on Economic Growth in Sudan. It based on the following hypotheses: The most critical factors impacting Economic Growth(GDP) in the long- and short-run: exchange rate, inflation, Money supply, and Lending cost . There was a statistically significant relationship between Economic Growth and: exchange rate, inflation, Money supply, and Lending cost . The study used a descriptive approach and the analytical statistical method to construct the model and Eviews8 Program for data analysis. The Data were collected from the Bank of Sudan for period 1990-2018. Using An autoregressive distributed lag (ARDL) approach was to estimate the model in the short and long run. Findings were as follows that there was a statistically significant relationship between the Economic Growth (GDP) and its factors in the long- and short-run. The money supply had a positive and statistically significance impact on the GDP growth. The exchange rate had a positive e and statistically significance impact on GDP growth. The inflation rate coefficient is negative, and statistically significance impact on GDP growth and Lending cost coefficient was a negative and statistically insignificant impact on GDP growth. Finally, correction coefficient values had high speed in overtaking shocks. The study recommended reducing inflation rate through appropriate economic policies in order to activate the effect of Total Investment Lending cost rate index. KEYWORDS: Inflation, Exchange Rate, ARDL, Growth, Co-integration.