Evaluation of the Stabilization Performance of the Mixed Monetary and Macro-Prudential Policy in the Economy of Iran
Today, achieving financial stability alongside stabilizing inflation and output is of particular importance among monetary policymakers and regulatory authorities. In this study, a Dynamic Stochastic General Equilibrium Model was used for the period 1990: 1 to 2014: 4 in the economy of Iran, in whic...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2018-12-01
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| Series: | پژوهشهای اقتصادی |
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| Online Access: | http://ecor.modares.ac.ir/article-18-17361-en.pdf |
| _version_ | 1797803198058070016 |
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| author | alireza erfani Hossein Tavakolian azadeh talebbeydokhti |
| author_facet | alireza erfani Hossein Tavakolian azadeh talebbeydokhti |
| author_sort | alireza erfani |
| collection | DOAJ |
| description | Today, achieving financial stability alongside stabilizing inflation and output is of particular importance among monetary policymakers and regulatory authorities. In this study, a Dynamic Stochastic General Equilibrium Model was used for the period 1990: 1 to 2014: 4 in the economy of Iran, in which a measure of financial shock was also introduced. In this model, the financial shock is modeled as a reduction in external financing premium of the firm. Comparison of the performance of policy rules showed that following an expansionary financial shock, macro-prudential policy regime, in which instruments of monetary policy and macro-prudential policy deal with excessive growth of credit, leads to a significant reduction in the external financing premium of the firm. This in turn leads to less volatility in economic variables, such as inflation and output. This would improve the welfare in the Economy of Iran. |
| first_indexed | 2024-03-13T05:18:14Z |
| format | Article |
| id | doaj.art-7cbc405b8d52475599d31524ff896fc2 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:18:14Z |
| publishDate | 2018-12-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-7cbc405b8d52475599d31524ff896fc22023-06-15T20:23:21ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322018-12-01184133160Evaluation of the Stabilization Performance of the Mixed Monetary and Macro-Prudential Policy in the Economy of Iranalireza erfani0Hossein Tavakolian1azadeh talebbeydokhti2 Associate Professor of Economics, Department of Economics, Semnan University, Semnan, Iran Assistant professor of Economics, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran PhD student in Monetary Economics, Semnan University, Semnan, Iran Today, achieving financial stability alongside stabilizing inflation and output is of particular importance among monetary policymakers and regulatory authorities. In this study, a Dynamic Stochastic General Equilibrium Model was used for the period 1990: 1 to 2014: 4 in the economy of Iran, in which a measure of financial shock was also introduced. In this model, the financial shock is modeled as a reduction in external financing premium of the firm. Comparison of the performance of policy rules showed that following an expansionary financial shock, macro-prudential policy regime, in which instruments of monetary policy and macro-prudential policy deal with excessive growth of credit, leads to a significant reduction in the external financing premium of the firm. This in turn leads to less volatility in economic variables, such as inflation and output. This would improve the welfare in the Economy of Iran.http://ecor.modares.ac.ir/article-18-17361-en.pdfmonetary policymacro-prudential policyfinancing premiumiran |
| spellingShingle | alireza erfani Hossein Tavakolian azadeh talebbeydokhti Evaluation of the Stabilization Performance of the Mixed Monetary and Macro-Prudential Policy in the Economy of Iran پژوهشهای اقتصادی monetary policy macro-prudential policy financing premium iran |
| title | Evaluation of the Stabilization Performance of the Mixed Monetary and Macro-Prudential Policy in the Economy of Iran |
| title_full | Evaluation of the Stabilization Performance of the Mixed Monetary and Macro-Prudential Policy in the Economy of Iran |
| title_fullStr | Evaluation of the Stabilization Performance of the Mixed Monetary and Macro-Prudential Policy in the Economy of Iran |
| title_full_unstemmed | Evaluation of the Stabilization Performance of the Mixed Monetary and Macro-Prudential Policy in the Economy of Iran |
| title_short | Evaluation of the Stabilization Performance of the Mixed Monetary and Macro-Prudential Policy in the Economy of Iran |
| title_sort | evaluation of the stabilization performance of the mixed monetary and macro prudential policy in the economy of iran |
| topic | monetary policy macro-prudential policy financing premium iran |
| url | http://ecor.modares.ac.ir/article-18-17361-en.pdf |
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