An Investigation of the Effect of Devaluation of The Currency on Balance of Payments (To Examine Marshal Lerner Condition in Iran)
Applied study about developing countries indicates real devaluation of the currency has different effect on balance of payments. Devaluation of the currency can improve balance of payment if the exchange market was in the relative stability and monetary and fiscal policy was also specified and not e...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2009-09-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Online Access: | https://joer.atu.ac.ir/article_2880_0f1c286e4703918f6c05c5af9885a783.pdf |
| _version_ | 1797375695917154304 |
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| author | Farhad Dejpasand Hossein Goudarzi |
| author_facet | Farhad Dejpasand Hossein Goudarzi |
| author_sort | Farhad Dejpasand |
| collection | DOAJ |
| description | Applied study about developing countries indicates real devaluation of the currency has different effect on balance of payments. Devaluation of the currency can improve balance of payment if the exchange market was in the relative stability and monetary and fiscal policy was also specified and not expansionary. Exchange market stationary examines by Marshal Lerner condition. Marshal Lerner condition states that if absolute sum of demand and supply elasticity of exchange rate is greater than one exchange market is stable and increasing exchange rate or devaluation of the currency can improve the balance of payments. This study examines Marshal Lerner condition in Iran by Time series and panel data model. The result of this empirical examine suggests that the Marshal Lerner condition
does not satisfy by time series estimation of the model in long and short run. The result of panel data estimation of the model also suggests that Marshal Lerner condition does not hold in Iran. |
| first_indexed | 2024-03-08T19:28:09Z |
| format | Article |
| id | doaj.art-0d3aee311d0f43dfa1d8588ee401a5d6 |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:28:09Z |
| publishDate | 2009-09-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-0d3aee311d0f43dfa1d8588ee401a5d62023-12-26T07:56:55ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532009-09-0193415412880An Investigation of the Effect of Devaluation of The Currency on Balance of Payments (To Examine Marshal Lerner Condition in Iran)Farhad Dejpasand0Hossein Goudarzi1عضو هیأت علمی دانشکده علوم اقتصادی و سیاسی- دانشگاه شهید بهشتیکارشناس ارشد سازمان مدیریت و برنامهریزی کشورApplied study about developing countries indicates real devaluation of the currency has different effect on balance of payments. Devaluation of the currency can improve balance of payment if the exchange market was in the relative stability and monetary and fiscal policy was also specified and not expansionary. Exchange market stationary examines by Marshal Lerner condition. Marshal Lerner condition states that if absolute sum of demand and supply elasticity of exchange rate is greater than one exchange market is stable and increasing exchange rate or devaluation of the currency can improve the balance of payments. This study examines Marshal Lerner condition in Iran by Time series and panel data model. The result of this empirical examine suggests that the Marshal Lerner condition does not satisfy by time series estimation of the model in long and short run. The result of panel data estimation of the model also suggests that Marshal Lerner condition does not hold in Iran.https://joer.atu.ac.ir/article_2880_0f1c286e4703918f6c05c5af9885a783.pdf |
| spellingShingle | Farhad Dejpasand Hossein Goudarzi An Investigation of the Effect of Devaluation of The Currency on Balance of Payments (To Examine Marshal Lerner Condition in Iran) Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| title | An Investigation of the Effect of Devaluation of
The Currency on Balance of Payments
(To Examine Marshal Lerner Condition in Iran) |
| title_full | An Investigation of the Effect of Devaluation of
The Currency on Balance of Payments
(To Examine Marshal Lerner Condition in Iran) |
| title_fullStr | An Investigation of the Effect of Devaluation of
The Currency on Balance of Payments
(To Examine Marshal Lerner Condition in Iran) |
| title_full_unstemmed | An Investigation of the Effect of Devaluation of
The Currency on Balance of Payments
(To Examine Marshal Lerner Condition in Iran) |
| title_short | An Investigation of the Effect of Devaluation of
The Currency on Balance of Payments
(To Examine Marshal Lerner Condition in Iran) |
| title_sort | investigation of the effect of devaluation of the currency on balance of payments to examine marshal lerner condition in iran |
| url | https://joer.atu.ac.ir/article_2880_0f1c286e4703918f6c05c5af9885a783.pdf |
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