This study is focused on the application of the monetary policy instruments in Lebanon throughout the 1993-2002 period and their impact on the Lebanese economy, namely the business cycle. Theoretically, we survey the techniques of monetary control and identify the process whereby these techniques might affect the macroeconomic behavior. Theories of how to conduct the monetary policy view the latter as an economic instrument which uses money supply and interest rates as intermediate objectives to help achieve a healthy business cycle-growth in output, low unemployment and low inflation. ...