Measure the impact of Monetary Policy on Economic Growth in Sudan for Period1970-2018

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
significant impact on the GDP growth. The exchange rate had a positive e and statistically significant 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.