[Home ] [Archive]   [ فارسی ]  
Main Menu
Home
Journal Information
Aims& Scopes
Editorial Board
About the Journal
Journal News
Articles archive
All Issues
Current Issue
Browse by Authors
Browse by Keywords
For Authors
Call for Papers
Submission Instruction
Submission Form
For Reviewers
Reviewers Section
Registration
Registration Information
Registration Form
Contact us
Contact Information
Contact us
Site Facilities
Site map
Search contents
FAQ
Top 10 contents
Inform to friends
::
MBRI Journals

Journal of Money & Economy

AWT IMAGE

(رتبه علمی-پژوهشی)

..
Related Journals

Journal of Islamic Finance Research

AWT IMAGE

(Biannual)

..
Search in website

Advanced Search
..
Receive site information
Enter your Email in the following box to receive the site news and information.
..
:: year 9, Issue 27 (Spring 2016) ::
JMBR 2016, 9(27): 29-52 Back to browse issues page
The Asymmetric Exchange Rate Pass-Through in Iranian Economy
Mohammad Arbab Afzali *1 , Ilnaz Ebrahimi
Abstract:   (16006 Views)

The Survey of relationship between the exchange rate and domestic price levels, that has been known as “exchange rate pass-through” in international finance literature, have been one of the key issues in the field of international economics in recent decades. Exchange rate pass-through is defined as "percentage change in the domestic price of imported goods for every one percent change in the exchange rate between the exporting and importing countries”. In this study we examined the positive and negative exchange rate shocks on Iranian inflation rate and other macroeconomic variables during the period from 1339 to 1392, and in the context of a VAR Approach. The results indicate that the reaction of inflation rate to positive exchange rate shock (devaluation of the national currency and increasing the nominal exchange rate) is much more of a negative shock (increase the value of the national currency and decreasing the nominal exchange rate) is. In other words we can say that the degree of exchange rate pass-through in the event of a positive exchange rate shock is more (complete). The analysis of variance decomposition also shows that the sensitivity of inflation to the increase in exchange rate (devaluation of the Rial), is far more than reducing it (strengthening the Rial). The average explanatory of inflation by positive exchange rate shock in different periods is 4.1 percent, while for negative shock is 1.8 percent.

Full-Text [PDF 744 kb]   (1498 Downloads)    
Type of Study: Empirical Study | Subject: International Finance (F3)
Received: 2015/05/10 | Accepted: 2017/01/4 | Published: 2017/05/22
Send email to the article author


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 9, Issue 27 (Spring 2016) Back to browse issues page
فصلنامه پژوهش‌های پولی-بانکی Journal of Monetary & Banking Research
Persian site map - English site map - Created in 0.06 seconds with 35 queries by YEKTAWEB 4713