Selecting the Government Financial Rule for Reducing the Negative Effects of the Oil Sanctions on the Selected Macroeconomic Variables in Iran: Adopting the Stock-Flow Consistent Model
Financial rules can prevent budget fluctuations by regularizing the financial relations of the public sector. This research analyzes four financial rules in the framework of the Stock-Flow Consistent model. These rules are government spending as a constant ratio of GDP, government budget deficit as...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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Institute for Management and Planning Studies
2022-12-01
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| Series: | برنامهریزی و بودجه |
| Subjects: | |
| Online Access: | http://jpbud.ir/article-1-2141-en.html |
| _version_ | 1797871273872719872 |
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| author | MohammadAli Maghsoudpour Mostafa Salimifar Narges Salehnia |
| author_facet | MohammadAli Maghsoudpour Mostafa Salimifar Narges Salehnia |
| author_sort | MohammadAli Maghsoudpour |
| collection | DOAJ |
| description | Financial rules can prevent budget fluctuations by regularizing the financial relations of the public sector. This research analyzes four financial rules in the framework of the Stock-Flow Consistent model. These rules are government spending as a constant ratio of GDP, government budget deficit as a constant ratio of GDP, government debt as a constant ratio of GDP, and a balanced budget. The simulation results of the research model for 50 years (2011-2061) show that the choice of financial rule can differ depending on the government's goals, the desired time horizon, and the economic conditions. Among the examined rules, government spending as a fixed ratio of GDP is optimal in the condition of oil sanctions, since it reduces the negative effects of oil sanctions on the selected macroeconomic variables of the model. Considering the importance of choosing a financial rule in accordance with changing economic conditions, such as an oil sanction, it is suggested that the rules should be designed considering the requirements of the country's economy and the goals of the policymaker, and get revised with changes in economic conditions or changes in the priority of goals. |
| first_indexed | 2024-04-10T00:41:17Z |
| format | Article |
| id | doaj.art-feb450e72fea4149aab70d2711b581b0 |
| institution | Directory Open Access Journal |
| issn | 2251-9092 2251-9106 |
| language | fas |
| last_indexed | 2024-04-10T00:41:17Z |
| publishDate | 2022-12-01 |
| publisher | Institute for Management and Planning Studies |
| record_format | Article |
| series | برنامهریزی و بودجه |
| spelling | doaj.art-feb450e72fea4149aab70d2711b581b02023-03-14T06:51:17ZfasInstitute for Management and Planning Studiesبرنامهریزی و بودجه2251-90922251-91062022-12-0127375108Selecting the Government Financial Rule for Reducing the Negative Effects of the Oil Sanctions on the Selected Macroeconomic Variables in Iran: Adopting the Stock-Flow Consistent ModelMohammadAli Maghsoudpour0Mostafa Salimifar1Narges Salehnia2 Faculty of Economic and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran Faculty of Economic and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran Faculty of Economic and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran Financial rules can prevent budget fluctuations by regularizing the financial relations of the public sector. This research analyzes four financial rules in the framework of the Stock-Flow Consistent model. These rules are government spending as a constant ratio of GDP, government budget deficit as a constant ratio of GDP, government debt as a constant ratio of GDP, and a balanced budget. The simulation results of the research model for 50 years (2011-2061) show that the choice of financial rule can differ depending on the government's goals, the desired time horizon, and the economic conditions. Among the examined rules, government spending as a fixed ratio of GDP is optimal in the condition of oil sanctions, since it reduces the negative effects of oil sanctions on the selected macroeconomic variables of the model. Considering the importance of choosing a financial rule in accordance with changing economic conditions, such as an oil sanction, it is suggested that the rules should be designed considering the requirements of the country's economy and the goals of the policymaker, and get revised with changes in economic conditions or changes in the priority of goals.http://jpbud.ir/article-1-2141-en.htmloil sanctionfinancial rulesgovernment budget deficitbalance sheet matrixtransaction matrixstock-flow consistent model |
| spellingShingle | MohammadAli Maghsoudpour Mostafa Salimifar Narges Salehnia Selecting the Government Financial Rule for Reducing the Negative Effects of the Oil Sanctions on the Selected Macroeconomic Variables in Iran: Adopting the Stock-Flow Consistent Model برنامهریزی و بودجه oil sanction financial rules government budget deficit balance sheet matrix transaction matrix stock-flow consistent model |
| title | Selecting the Government Financial Rule for Reducing the Negative Effects of the Oil Sanctions on the Selected Macroeconomic Variables in Iran: Adopting the Stock-Flow Consistent Model |
| title_full | Selecting the Government Financial Rule for Reducing the Negative Effects of the Oil Sanctions on the Selected Macroeconomic Variables in Iran: Adopting the Stock-Flow Consistent Model |
| title_fullStr | Selecting the Government Financial Rule for Reducing the Negative Effects of the Oil Sanctions on the Selected Macroeconomic Variables in Iran: Adopting the Stock-Flow Consistent Model |
| title_full_unstemmed | Selecting the Government Financial Rule for Reducing the Negative Effects of the Oil Sanctions on the Selected Macroeconomic Variables in Iran: Adopting the Stock-Flow Consistent Model |
| title_short | Selecting the Government Financial Rule for Reducing the Negative Effects of the Oil Sanctions on the Selected Macroeconomic Variables in Iran: Adopting the Stock-Flow Consistent Model |
| title_sort | selecting the government financial rule for reducing the negative effects of the oil sanctions on the selected macroeconomic variables in iran adopting the stock flow consistent model |
| topic | oil sanction financial rules government budget deficit balance sheet matrix transaction matrix stock-flow consistent model |
| url | http://jpbud.ir/article-1-2141-en.html |
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