Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313092 
Year of Publication: 
2025
Citation: 
[Journal:] Iranian Journal of Finance [ISSN:] 2676-6345 [Volume:] 9 [Issue:] 2 [Article No.:] 3 [Publisher:] Iran Finance Association [Place:] Tehran, Iran [Year:] 2025 [Pages:] 70-106
Publisher: 
Iran Finance Association, Tehran, Iran
Abstract: 
Financial sanctions have economic consequences for the oil-dependent economies. We examined the impact of financial sanctions on exchange rate fluctuations and macroeconomic variables in Iran. To this end, we employed a new Keynesian DSGE model. The results indicated that with the shock in foreign exchange, production (Y) and imports initially decreased. Oil production has shown a positive reaction initially and a negative reaction in the medium term, and after 7 periods, the effect of the shock has disappeared. The capital stock (K) also decreased initially, and in two periods, it reacted positively. In the tenth period, its effect disappeared, and in the long term, it became partially negative, and its effect disappeared. The inflation rate has decreased initially, and its effect disappeared over time. Consumption decreased, and after five cycles, the reaction became positive and then disappeared. The interest rate increased initially and then decreased, and in the 10th period, the shock effect disappeared. The exchange rate initially decreased and then increased after one period.
Subjects: 
Financial Sanction,
Exchange Rate
Oil Revenue, Volatility
Macroeconomic Variables
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
Document Version: 
Published Version
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