Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283055 
Year of Publication: 
2023
Citation: 
[Journal:] Quarterly Journal of Applied Economics Studies Iran [ISSN:] 2322-472X [Volume:] 11 [Issue:] 44 [Publisher:] Bu-Ali Sina University [Place:] Hamedan, Iran [Year:] 2023 [Pages:] 9-37
Publisher: 
Bu-Ali Sina University, Hamedan, Iran
Abstract: 
By utilizing the new Keynesian stochastic dynamic general equilibrium model, this paper examines the effects of credit easing policy on macroeconomic variables with or emphasizing on production. For this purpose, a model has been design including 5 sectors of household, enterprises, banks, government and central bank. Considering the dominance of fiscal policy over monetary policy in the Iranian economy, the integrated constraint of the government and the central bank has been used. The model has been estimated using Bayesian method and quarterly time series data during 1991 to 2017. The results of Impulse Response Function show that implementation of this policy has increased consumption, investment, government spending and ultimately production, which indicates the effectiveness of this unconventional monetary policy to get the economy out of recession. Also, in response to the positive impulse of the central bank’s credit line to banks and the negative impulse of legal reserves, bank facilities increase, which is in line with theoretical expectations. The impact of the negative impulse of interbank market rate has also led to an increase in production credits.
Subjects: 
Recession
Credit Easing
DSGE Model
Credit Line
Bayesian Method
Persistent Identifier of the first edition: 
Document Type: 
Article
Document Version: 
Published Version
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