Macro-Prudential Policies and Financial Cycle in Iran
Financial markets are channels for attracting surplus financial resources and allocating them to investment. Macro-prudential policy needs to consider financial cycle in order to assess the state of the financial sector, predict its developments and justify the need for specific policy tools. we exa...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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University of Sistan and Baluchestan
2021-04-01
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| Series: | International Journal of Business and Development Studies |
| Subjects: | |
| Online Access: | https://ijbds.usb.ac.ir/article_6582_fa2293c386cc2c633121c9a41d0e5d30.pdf |
| _version_ | 1797803301962514432 |
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| author | Nafiseh Keshtgar Mosayeb Pahlavani Seyed Hossein mirjalili |
| author_facet | Nafiseh Keshtgar Mosayeb Pahlavani Seyed Hossein mirjalili |
| author_sort | Nafiseh Keshtgar |
| collection | DOAJ |
| description | Financial markets are channels for attracting surplus financial resources and allocating them to investment. Macro-prudential policy needs to consider financial cycle in order to assess the state of the financial sector, predict its developments and justify the need for specific policy tools. we examined the effect of macro-prudential policies on financial cycle of Iran's economy Over the period 2008-2018 using Unobserved Components Structural Time Series Model. We explored the effect of macro-prudential policy index and other variables on the financial cycle. The findings of this study, using the Generalized method of moments (GMM) for the time series data, suggested that the macro-prudential policy index has a negative and significant effect on the financial cycle in the Iranian economy. Also, the probability(likelihood) of a banking crisis, the interbank market loan rate and the economic growth index have positive and significant effect on the financial cycle. |
| first_indexed | 2024-03-13T05:19:47Z |
| format | Article |
| id | doaj.art-fe1ba1b471b843c39da49f343536dfdc |
| institution | Directory Open Access Journal |
| issn | 2538-3302 2538-3310 |
| language | English |
| last_indexed | 2024-03-13T05:19:47Z |
| publishDate | 2021-04-01 |
| publisher | University of Sistan and Baluchestan |
| record_format | Article |
| series | International Journal of Business and Development Studies |
| spelling | doaj.art-fe1ba1b471b843c39da49f343536dfdc2023-06-15T16:56:35ZengUniversity of Sistan and BaluchestanInternational Journal of Business and Development Studies2538-33022538-33102021-04-011319511410.22111/ijbds.2021.65826582Macro-Prudential Policies and Financial Cycle in IranNafiseh Keshtgar0Mosayeb Pahlavani1Seyed Hossein mirjalili2PhD in Economics, Department of Economics, University of Sistan and Baluchestan, IranAssociate Professor of Economics, Department of Economics, University of Sistan and Baluchestan, IranProfessor of Economics , Institute for Humanities and Cultural Studies, IranFinancial markets are channels for attracting surplus financial resources and allocating them to investment. Macro-prudential policy needs to consider financial cycle in order to assess the state of the financial sector, predict its developments and justify the need for specific policy tools. we examined the effect of macro-prudential policies on financial cycle of Iran's economy Over the period 2008-2018 using Unobserved Components Structural Time Series Model. We explored the effect of macro-prudential policy index and other variables on the financial cycle. The findings of this study, using the Generalized method of moments (GMM) for the time series data, suggested that the macro-prudential policy index has a negative and significant effect on the financial cycle in the Iranian economy. Also, the probability(likelihood) of a banking crisis, the interbank market loan rate and the economic growth index have positive and significant effect on the financial cycle.https://ijbds.usb.ac.ir/article_6582_fa2293c386cc2c633121c9a41d0e5d30.pdfmacro-prudential policiesfinancial cycleboom and bustgmm |
| spellingShingle | Nafiseh Keshtgar Mosayeb Pahlavani Seyed Hossein mirjalili Macro-Prudential Policies and Financial Cycle in Iran International Journal of Business and Development Studies macro-prudential policies financial cycle boom and bust gmm |
| title | Macro-Prudential Policies and Financial Cycle in Iran |
| title_full | Macro-Prudential Policies and Financial Cycle in Iran |
| title_fullStr | Macro-Prudential Policies and Financial Cycle in Iran |
| title_full_unstemmed | Macro-Prudential Policies and Financial Cycle in Iran |
| title_short | Macro-Prudential Policies and Financial Cycle in Iran |
| title_sort | macro prudential policies and financial cycle in iran |
| topic | macro-prudential policies financial cycle boom and bust gmm |
| url | https://ijbds.usb.ac.ir/article_6582_fa2293c386cc2c633121c9a41d0e5d30.pdf |
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