The Effects of Interest Rate Fluctuations on Iran’s Economy
According to macroeconomic theories, interest rate is investment cost which is important in decision process that organized by private sector. But, there aren’t any consensus among economists about this hypothesis. Also from theoretical point, the effects of interest rate variation on saving rate i...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2008-09-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Online Access: | https://joer.atu.ac.ir/article_3211_3896f9067defb713e604f8bfccd643e9.pdf |
| Summary: | According to macroeconomic theories, interest rate is investment cost which is important in decision process that organized by private sector. But, there aren’t any consensus among economists about this hypothesis. Also from theoretical point, the effects of interest rate variation on saving rate is ambiguous. In fact, it is not clear that what will be the sign of elasticity of saving respect to interest rate fluctuations? therefore, in this paper, we assessed the simultaneous effects of interest rate on economy by macroeconomic model framework. We found that the interest rate have negative, but negligble, impact on investment of private sector. |
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| ISSN: | 1735-210X 2476-6453 |