Economic Growth
Hossien Amiri; Mohsen Salehi Komroudi; Mahnaz Pasban
Abstract
Macroeconomic conditions and the relationship of macroeconomic variables have a major impact on the economic performance of countries. Understanding these relationships helps policymakers manage macroeconomics better. Therefore, this study examines the relationship between economic growth, inflation, ...
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Macroeconomic conditions and the relationship of macroeconomic variables have a major impact on the economic performance of countries. Understanding these relationships helps policymakers manage macroeconomics better. Therefore, this study examines the relationship between economic growth, inflation, interest rate and exchange rate in selected Muslim countries (Bahrain, Bangladesh, Egypt, Indonesia, Iran, Malaysia, Pakistan, Kuwait, Oman and Qatar). Therefore Panel VAR method was used for this purpose. The study used panel data from selected countries over the period 2000–2016. According to the results, all variables are stationary and the model was stable. According to Granger causality results inflation rate, exchange rate and interest rate were the cause of economic growth; inflation rate, economic growth and exchange rate were the cause of economic growth rate; inflation rate, economic growth and interest rate were the cause of exchange rate and only inflation had not the Granger's causality. Exchange rate, interest rate, and inflation had positive effects on economic growth based on impulse-response functions. Exchange rate, interest rate, and economic growth had very short-term and negatively positive effects on themselves. Exchange rate, inflation and economic growth have had a negative effect on the interest rate. Finally, the effect of interest rate is unclear on exchange rate and inflation rate and economic growth had negative effect on economic growth.
Monetary policy
Reza Shakeri Bostanabad; Zahra Jalili; Mohsen Salehi Komrudi
Abstract
The importance of monetary policy as one of the most important demand-side policies has led to a discussion of the growth of the volume of money and its impact on various economic sectors, which has always been one of the most challenging topics in macroeconomic literature. While Monetary Policy is usually ...
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The importance of monetary policy as one of the most important demand-side policies has led to a discussion of the growth of the volume of money and its impact on various economic sectors, which has always been one of the most challenging topics in macroeconomic literature. While Monetary Policy is usually performed at a national level, its impact may depend on the properties of regions. Therefore, this research tries to answer the question: Is the Impact of Monetary Policy on the Employment of the Provinces (Iran's Industrial Provinces) is homogenous? For this purpose, using the SFAVAR method the relation between money supply and the Employment of ten Iranian Industrial Provinces in the period 2005:1-2016:4 is studied. The provinces studied were selected based on the share of value added of the industry sector of each province to the total value added of the country's industry. The results reveal the impact of monetary policy on regional employment is small and is limited to short-run. Furthermore, the response of employment to liquidity shock in various provinces is different. Overall, the results show monetary policy cannot be an effective policy to create regional employment; because its effect is slight and short-lived. Therefore, to maintain the stability of the regional economy and to prevent inflation in the provinces of the country, liquidity must be controlled.
