The Effectiveness of Monetary Policy in Achieving the Objectives of Economic Policy in Syria Using Caldor's Magic Square for the Period (2000-2020)

Abstract

This research aims to assess the effectiveness of monetary policy in achieving economic policy goals in Syria, with the goal of developing a future vision for an appropriate monetary policy that corrects imbalances in the Syrian economy's structure and achieves what is known as the "magic square" (high economic growth, low inflation, low unemployment, external balance). The study relies on data from the Central Bureau of Statistics and the Central Bank of Syria for the period from 2000 to 2020, utilizing the Vector Error Correction Model (VECM) and Vector Autoregressive (VAR) model through (E-Views 12 software).                    

The research concludes that Syrian monetary policy did not play a role in achieving the balance goal, with no continuous positive effects of Syrian monetary policy in the short and long terms, contributing to the adaptation of the magic square variables and the achievement of Syrian economic policy goals.