Banking, Monetary target policy and Stock market shock
This research has been investigated, economy and balance-sheet effects of the money growth rate targeting. According to financial statements of the banking network and national accounts, using dynamic stochastic general equilibrium New Keynesian and statistical data for the period 1991-2019.For esti...
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| Format: | Article |
| Language: | English |
| Published: |
Allameh Tabataba'i University Press
2022-07-01
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| Series: | Mathematics and Modeling in Finance |
| Subjects: | |
| Online Access: | https://jmmf.atu.ac.ir/article_14564_308f017ae7839bc979ef9eaee1aa01e8.pdf |
| _version_ | 1797795989702049792 |
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| author | Hossein Eslami Mofid Abadi Marzieh Ebrahimi Shaghaghi Morteza Taherifard |
| author_facet | Hossein Eslami Mofid Abadi Marzieh Ebrahimi Shaghaghi Morteza Taherifard |
| author_sort | Hossein Eslami Mofid Abadi |
| collection | DOAJ |
| description | This research has been investigated, economy and balance-sheet effects of the money growth rate targeting. According to financial statements of the banking network and national accounts, using dynamic stochastic general equilibrium New Keynesian and statistical data for the period 1991-2019.For estimating parameters, is used New Keynesian DSGE model and Bayesian method. This paper verify the validity of the model by analyzing the impulse response functions and Brooks and Goleman test. The results of the model indicate that the effect of negative the money growth rate targeting, reduce deposits, reduce loans interest rates, lead to reducing banks' resources, bank lending and then the health of the banks would compromise. In this way, investment and production will be reduced. Also, the effect of stock prices increasing, deposit, loan decrease and investment and production increase. Therefore, this research suggests the policy of negative the money growth rate targeting coincide with the policy of raising interest rates and stock price rising. |
| first_indexed | 2024-03-13T03:26:22Z |
| format | Article |
| id | doaj.art-81c699fea8c84c99a71f04f2e9f478a5 |
| institution | Directory Open Access Journal |
| issn | 2783-0578 2783-056X |
| language | English |
| last_indexed | 2024-03-13T03:26:22Z |
| publishDate | 2022-07-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Mathematics and Modeling in Finance |
| spelling | doaj.art-81c699fea8c84c99a71f04f2e9f478a52023-06-25T07:59:43ZengAllameh Tabataba'i University PressMathematics and Modeling in Finance2783-05782783-056X2022-07-0121336210.22054/jmmf.2022.1456414564Banking, Monetary target policy and Stock market shockHossein Eslami Mofid Abadi0Marzieh Ebrahimi Shaghaghi1Morteza Taherifard2Assistant Professor, Department of Accounting and Management, Shahryar Branch, Islamic Azad University, Shahryar, IranDepartment of Accounting and Management, Shahryar Branch, Islamic Azad University, Shahryar, IranPhD student in Industrial Engineering, Office of Planning, Performance Monitoring, and Secretariat of High Council of Statistics, Statistical Center of IranThis research has been investigated, economy and balance-sheet effects of the money growth rate targeting. According to financial statements of the banking network and national accounts, using dynamic stochastic general equilibrium New Keynesian and statistical data for the period 1991-2019.For estimating parameters, is used New Keynesian DSGE model and Bayesian method. This paper verify the validity of the model by analyzing the impulse response functions and Brooks and Goleman test. The results of the model indicate that the effect of negative the money growth rate targeting, reduce deposits, reduce loans interest rates, lead to reducing banks' resources, bank lending and then the health of the banks would compromise. In this way, investment and production will be reduced. Also, the effect of stock prices increasing, deposit, loan decrease and investment and production increase. Therefore, this research suggests the policy of negative the money growth rate targeting coincide with the policy of raising interest rates and stock price rising.https://jmmf.atu.ac.ir/article_14564_308f017ae7839bc979ef9eaee1aa01e8.pdfbalance sheet effectmoney growth rate targetingdynamic stochastic general equilibriumstock price shock |
| spellingShingle | Hossein Eslami Mofid Abadi Marzieh Ebrahimi Shaghaghi Morteza Taherifard Banking, Monetary target policy and Stock market shock Mathematics and Modeling in Finance balance sheet effect money growth rate targeting dynamic stochastic general equilibrium stock price shock |
| title | Banking, Monetary target policy and Stock market shock |
| title_full | Banking, Monetary target policy and Stock market shock |
| title_fullStr | Banking, Monetary target policy and Stock market shock |
| title_full_unstemmed | Banking, Monetary target policy and Stock market shock |
| title_short | Banking, Monetary target policy and Stock market shock |
| title_sort | banking monetary target policy and stock market shock |
| topic | balance sheet effect money growth rate targeting dynamic stochastic general equilibrium stock price shock |
| url | https://jmmf.atu.ac.ir/article_14564_308f017ae7839bc979ef9eaee1aa01e8.pdf |
| work_keys_str_mv | AT hosseineslamimofidabadi bankingmonetarytargetpolicyandstockmarketshock AT marziehebrahimishaghaghi bankingmonetarytargetpolicyandstockmarketshock AT mortezataherifard bankingmonetarytargetpolicyandstockmarketshock |