Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191950
Authors: 
Shahraki, Sara
Sabahi, Ahmad
Adeli, Mohammad Hossein Mahdavi
Salimifar, Mostafa
Year of Publication: 
2016
Citation: 
[Journal:] Atlantic Review of Economics [ISSN:] 2174-3835 [Volume:] 2 [Year:] 2016
Abstract: 
This paper examines whether in analysis of the impact of monetary policy, the exchange rate can play a role along with the interest rate as a transmission mechanism of monetary policy effects on economic variables or not? For this purpose, the general dynamic stochastic equilibrium models were used in the form of a New Keynesian small open macro-economy. This model was designed for Iran's economy by considering oil-based economy's and the currency substitution Existence. Then, its calibration and simulation was conducted with Iran's economic data for the period of 1995-2011. The results from model validation, univariate and multivariate recognition of Markov Monte Carlo chain and analysis of the model impulse responses showed that in Iran's economy, the exchange rate plays a role along with the interest rate as a monetary transmission mechanism.
Subjects: 
New Keynesian small open macro-economy
dynamic stochastic general equilibrium model
exchange rate
monetary transmission mechanism
JEL: 
E12
E52
F31
Document Type: 
Article
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