The Selection of Appropriate Foreign Exchange Rate Regime for Iranian Economy with Regards to Oil Shocks.
The main goal of this paper is to examine an appropriate exchange rate regime in Iran. Most of the studies in Iranian economy have suggested a flexible exchange rate regime with a coordination between monetary and exchange rate policies. In this paper, we test the hypothesis that the managed exc...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2005-06-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_3764_1aaa6396eef714ae2172e16ea24ee1f4.pdf |
| _version_ | 1797369433980665856 |
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| author | Akbar Komaijani Mohammad Nad Ali |
| author_facet | Akbar Komaijani Mohammad Nad Ali |
| author_sort | Akbar Komaijani |
| collection | DOAJ |
| description | The main goal of this paper is to examine an appropriate exchange rate regime in Iran. Most of the studies in Iranian economy have suggested a flexible exchange rate regime with a coordination between monetary and exchange rate policies.
In this paper, we test the hypothesis that the managed exchange rate regime is the most appropriate regime for Iran using the Mundell-Fleming Model, and 3SLS method for the period 1974-2001.
The estimated macro-econometrics model has been used to simulate the reaction of five exchange rate regimes to oil shocks. The results reveal that the managed exchange rates in terms of trade balance and purchasing power parity are expected to yield a more stable prices and non-oil GDP growth rates. In contrast, a quasi-floating exchange rate regime, in which the exchange rate is determined by the percentage of trade balance deviations, will result in the worst kind of volitility in non-oil GDP and inflation rates at the time of oil shocks. |
| first_indexed | 2024-03-08T17:46:48Z |
| format | Article |
| id | doaj.art-238b3cab6fc1467297e5d0551bc52761 |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:46:48Z |
| publishDate | 2005-06-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-238b3cab6fc1467297e5d0551bc527612024-01-02T10:27:43ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452005-06-017231373764The Selection of Appropriate Foreign Exchange Rate Regime for Iranian Economy with Regards to Oil Shocks.Akbar Komaijani0Mohammad Nad Ali1Professor of Economics, Tehran University, Tehran, IranResearcher, Bank Markazi, Tehran, IranThe main goal of this paper is to examine an appropriate exchange rate regime in Iran. Most of the studies in Iranian economy have suggested a flexible exchange rate regime with a coordination between monetary and exchange rate policies. In this paper, we test the hypothesis that the managed exchange rate regime is the most appropriate regime for Iran using the Mundell-Fleming Model, and 3SLS method for the period 1974-2001. The estimated macro-econometrics model has been used to simulate the reaction of five exchange rate regimes to oil shocks. The results reveal that the managed exchange rates in terms of trade balance and purchasing power parity are expected to yield a more stable prices and non-oil GDP growth rates. In contrast, a quasi-floating exchange rate regime, in which the exchange rate is determined by the percentage of trade balance deviations, will result in the worst kind of volitility in non-oil GDP and inflation rates at the time of oil shocks.https://ijer.atu.ac.ir/article_3764_1aaa6396eef714ae2172e16ea24ee1f4.pdfexchange rate regimeoil shocksmanaged exchange rate regimestabilization of output & prices |
| spellingShingle | Akbar Komaijani Mohammad Nad Ali The Selection of Appropriate Foreign Exchange Rate Regime for Iranian Economy with Regards to Oil Shocks. فصلنامه پژوهشهای اقتصادی ایران exchange rate regime oil shocks managed exchange rate regime stabilization of output & prices |
| title | The Selection of Appropriate Foreign Exchange Rate Regime for Iranian Economy with
Regards to Oil Shocks. |
| title_full | The Selection of Appropriate Foreign Exchange Rate Regime for Iranian Economy with
Regards to Oil Shocks. |
| title_fullStr | The Selection of Appropriate Foreign Exchange Rate Regime for Iranian Economy with
Regards to Oil Shocks. |
| title_full_unstemmed | The Selection of Appropriate Foreign Exchange Rate Regime for Iranian Economy with
Regards to Oil Shocks. |
| title_short | The Selection of Appropriate Foreign Exchange Rate Regime for Iranian Economy with
Regards to Oil Shocks. |
| title_sort | selection of appropriate foreign exchange rate regime for iranian economy with regards to oil shocks |
| topic | exchange rate regime oil shocks managed exchange rate regime stabilization of output & prices |
| url | https://ijer.atu.ac.ir/article_3764_1aaa6396eef714ae2172e16ea24ee1f4.pdf |
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