I. INTRODUCTION Monetary policy is how the Central Bank influences the path it wants the economy to follow. It does this by controlling the money supply using the short-term interest rate as the primary tool for controlling inflation and economic growth. The goal of most central banks is to support low unemployment and relatively stable prices, however price stability is the main, medium and long-term objective of monetary policy. An expansionary monetary policy aims to increase the money supply by lowering interest rates with the hope of increasing consumption and investment through easing credit; it is used to combat unemployment in times of recession. However, a restrictive policy is used to decrease the money supply by increasing the interest rate; is intended to slow inflation. Monetary policy has been an area on which much economic research has been carried out in different countries, with particular attention to the empirical analysis of the shock of monetary policy on output and prices. Econometric models were used to determine the effects of different policy options. Over time, econometric analysis techniques have improved and the most recent literatures have estimated the effects of monetary policy using VAR and SVAR techniques, this has made it possible to evaluate the effectiveness of monetary policy in different countries. In reality, shocks to the economy are driven by developments outside the central bank. Studies of monetary policy have shown wide variability in outcomes across different countries, mainly resulting from the different economic cycles experienced at different times across countries; production and prices appear to be strong or weak depending on the sample periods. The objective of this study is to examine ... half of the document ......, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 1-7812. Lawrence J. Christiano & Martin Eichenbaum & Charles Evans, 1994. "The Effects of Monetary Policy Shocks: Evidence from the Flow of Funds," Working Paper Series, Macroeconomic Issues 94-2, Federal Reserve Bank of Chicago13. Lucas, Robert Jr, 1976. "Econometric Policy Evaluation: A Critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.14. Mishkin, Frederic S. 2009. “Is Monetary Policy Effective During Financial Crises?” American Economic Review, 99(2): 573-77.15. Zha, Tao, “Evaluating the effect of Monetary Policy with Economic Policy,” Federal Reserve Bank of Atlanta, 199816. Wu C. Jing and Xia D Fan, 2013, “Measuring the Macroeconomic Impact of Monetary Policy at the Zero Lower Bound” , Federal Reserve Bank of San Francisco