How do monetary policy tools work? An investigation on monetary transmission mechanism in Iran
Monetary transmission mechanism includes some channels in which monetary policy influences on macroeconomic variables such as the output and inflation. In this study, the effect of monetary policy tools including interest rate, exchange rate and money supply on the variables of monetary policy targe...
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| Format: | Article |
| Language: | English |
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Growing Science
2013-04-01
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| Series: | Management Science Letters |
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| Online Access: | http://www.growingscience.com/msl/Vol3/msl_2013_71.pdf |
| _version_ | 1818823673138642944 |
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| author | Naser Ali Yadollahzadeh Tabari |
| author_facet | Naser Ali Yadollahzadeh Tabari |
| author_sort | Naser Ali Yadollahzadeh Tabari |
| collection | DOAJ |
| description | Monetary transmission mechanism includes some channels in which monetary policy influences on macroeconomic variables such as the output and inflation. In this study, the effect of monetary policy tools including interest rate, exchange rate and money supply on the variables of monetary policy targets including inflation and output is examined through VECM methodology over the period 1989:2-2007:2. Our findings show that in long-term, monetary supply is the most important variable influencing the price followed by the variables of output and exchange rate, respectively. Exogenous-being of interest rate indicates that this channel is underdeveloped and there is no monetary policy rule like Taylor rule in Iran's economy. |
| first_indexed | 2024-12-18T23:43:43Z |
| format | Article |
| id | doaj.art-92a5fdfe6feb4ceeae6da29153020bdc |
| institution | Directory Open Access Journal |
| issn | 1923-9335 1923-9343 |
| language | English |
| last_indexed | 2024-12-18T23:43:43Z |
| publishDate | 2013-04-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj.art-92a5fdfe6feb4ceeae6da29153020bdc2022-12-21T20:47:17ZengGrowing ScienceManagement Science Letters1923-93351923-93432013-04-013411671174How do monetary policy tools work? An investigation on monetary transmission mechanism in IranNaser Ali Yadollahzadeh TabariMonetary transmission mechanism includes some channels in which monetary policy influences on macroeconomic variables such as the output and inflation. In this study, the effect of monetary policy tools including interest rate, exchange rate and money supply on the variables of monetary policy targets including inflation and output is examined through VECM methodology over the period 1989:2-2007:2. Our findings show that in long-term, monetary supply is the most important variable influencing the price followed by the variables of output and exchange rate, respectively. Exogenous-being of interest rate indicates that this channel is underdeveloped and there is no monetary policy rule like Taylor rule in Iran's economy.http://www.growingscience.com/msl/Vol3/msl_2013_71.pdfMonetary policyPrice levelOutputNominal effective exchange rate |
| spellingShingle | Naser Ali Yadollahzadeh Tabari How do monetary policy tools work? An investigation on monetary transmission mechanism in Iran Management Science Letters Monetary policy Price level Output Nominal effective exchange rate |
| title | How do monetary policy tools work? An investigation on monetary transmission mechanism in Iran |
| title_full | How do monetary policy tools work? An investigation on monetary transmission mechanism in Iran |
| title_fullStr | How do monetary policy tools work? An investigation on monetary transmission mechanism in Iran |
| title_full_unstemmed | How do monetary policy tools work? An investigation on monetary transmission mechanism in Iran |
| title_short | How do monetary policy tools work? An investigation on monetary transmission mechanism in Iran |
| title_sort | how do monetary policy tools work an investigation on monetary transmission mechanism in iran |
| topic | Monetary policy Price level Output Nominal effective exchange rate |
| url | http://www.growingscience.com/msl/Vol3/msl_2013_71.pdf |
| work_keys_str_mv | AT naseraliyadollahzadehtabari howdomonetarypolicytoolsworkaninvestigationonmonetarytransmissionmechanisminiran |