In order to move toward inflation targeting, Jordan has to experience a set of economic, institutional and social reforms that are crucial to the success of the new monetary policy. Indeed, these conditions are necessary in order to achieve price stability and macroeconomic stability. The Jordanian fiscal strategy should focus on three main issues. First, is to rationalize and improve the efficiency of public expenditures as a way to stop the ongoing increase in the ratio of expenditure to GDP. As for the subsidies, as they are gradually removed, they should be replaced by better...