The Effects of Globalization on Inflation in Iran
Some studies show that in recent years, despite of increase in commodity prices such as oil and steel and conducting loose monetary policy in most countries, global price levels have low and stable rates of growth and inflation rates are well below the forecasts in Iran, in spite of adopting extreme...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2009-03-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_3515_cc2106013c5b24cee10d63c213f05508.pdf |
| _version_ | 1797369389175013376 |
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| author | Ali Taiebni Rezvan Zandyeh |
| author_facet | Ali Taiebni Rezvan Zandyeh |
| author_sort | Ali Taiebni |
| collection | DOAJ |
| description | Some studies show that in recent years, despite of increase in commodity prices such as oil and steel and conducting loose monetary policy in most countries, global price levels have low and stable rates of growth and inflation rates are well below the forecasts in Iran, in spite of adopting extremely expansionary policies, inflation rate has experienced a relatively stable trend in recent years. This may be due to globalization. This study aims at explaining theoretical bases of globalization effects on inflation and then evaluating it in Iran. In this study a VAR model has been used to test globalization effect on inflation, which mostly presents short-run dynamics of inflation. Results are as follow: 1- The more Iranian economy opens to trade the less domestic business cycles affect inflation and it will have a smoother path. 2-An increase in import price acts as a supply shock in the economy and increases inflation.3- Iran's trade partner's booms and slumps transmit to Iran through trade and affect domestic inflation. |
| first_indexed | 2024-03-08T17:46:02Z |
| format | Article |
| id | doaj.art-77f6a370cc094de4a60f1ea4c0686e20 |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:46:02Z |
| publishDate | 2009-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-77f6a370cc094de4a60f1ea4c0686e202024-01-02T10:28:29ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452009-03-01133853963515The Effects of Globalization on Inflation in IranAli Taiebni0Rezvan Zandyeh1Assistant Professor,University of TehranPh.D Student in Economics,University of TehranSome studies show that in recent years, despite of increase in commodity prices such as oil and steel and conducting loose monetary policy in most countries, global price levels have low and stable rates of growth and inflation rates are well below the forecasts in Iran, in spite of adopting extremely expansionary policies, inflation rate has experienced a relatively stable trend in recent years. This may be due to globalization. This study aims at explaining theoretical bases of globalization effects on inflation and then evaluating it in Iran. In this study a VAR model has been used to test globalization effect on inflation, which mostly presents short-run dynamics of inflation. Results are as follow: 1- The more Iranian economy opens to trade the less domestic business cycles affect inflation and it will have a smoother path. 2-An increase in import price acts as a supply shock in the economy and increases inflation.3- Iran's trade partner's booms and slumps transmit to Iran through trade and affect domestic inflation.https://ijer.atu.ac.ir/article_3515_cc2106013c5b24cee10d63c213f05508.pdfglobalizationinflationrelative pricesforeign tradeopenness |
| spellingShingle | Ali Taiebni Rezvan Zandyeh The Effects of Globalization on Inflation in Iran فصلنامه پژوهشهای اقتصادی ایران globalization inflation relative prices foreign trade openness |
| title | The Effects of Globalization on Inflation in Iran |
| title_full | The Effects of Globalization on Inflation in Iran |
| title_fullStr | The Effects of Globalization on Inflation in Iran |
| title_full_unstemmed | The Effects of Globalization on Inflation in Iran |
| title_short | The Effects of Globalization on Inflation in Iran |
| title_sort | effects of globalization on inflation in iran |
| topic | globalization inflation relative prices foreign trade openness |
| url | https://ijer.atu.ac.ir/article_3515_cc2106013c5b24cee10d63c213f05508.pdf |
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