[Home ] [Archive]   [ فارسی ]  
:: year 7, Issue 19 (Spring 2014) ::
JMBR 2014, 7(19): 51-67 Back to browse issues page
Oil price shocks and monetary policy in Iran: Evidences based on a Dynamic Stochastic General Equilibrium model
Hsan Heidari *, Ahmad Molabahrami
Abstract:   (3146 Views)

This study investigates the role of oil price shocks on monetary policy of the Iranian central bank, using a Dynamic Stochastic General Equilibrium (DSGE) model. The model considers the oil price shocks channel in government spending and includes the consolidated constraint of government and central bank. The Bayesian econometrics approach has been applied for model estimation using quarterly time series data from 1370 to 1389. The results show that, oil price shocks have positive and significant impact on monetary base and also money and government spending. Moreover, oil price shocks increase output and inflation significantly. The results represent a significant role of oil price shocks in monetary policy formation and illustrate government fiscal domination on central bank. In fact, our results documents that, the monetary policy of central bank has been dominated by government funding.

Full-Text [PDF 719 kb]   (2268 Downloads)    
Type of Study: Empirical Study |
Received: 2015/04/7 | Accepted: 2015/04/7 | Published: 2015/04/7

XML   Persian Abstract   Print

Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
year 7, Issue 19 (Spring 2014) Back to browse issues page
فصلنامه پژوهش‌های پولی-بانکی Journal of Monetary & Banking Research
Persian site map - English site map - Created in 0.04 seconds with 27 queries by YEKTAWEB 4422