其他摘要：The study aims at measuring the impact of the current account on inflation inJordan. In order to achieve that goal, the studypresents theoretical and econometricframework for an economic model that includes the determinants of inflation wherecurrent account deficit is one of them. The study finds out that the increase in currentaccount deficit affects domestic inflation negatively in the long run. This result would beattributed to the fact that current account deficit absorbs big part of the excess in thedomestic demand, in addition to the long run flexibility of the economy to producesubstitutes for imported goods. However, in the short run, it was found that currentaccount deficit affects domestic inflation positively. It was found that for this period thereis no enough flexibility for the Jordanian economy to produce enough goods to substituteimports, which leads to inflation.
