Ebrahim Nasirifar; Ebrahim Hojabr Kiani; Seyed Shamsodin Hossaini; Farhad Ghaffari
Abstract
The basic metals industry is one of the most important national production industries, which includes approximately 20 percent of the industrial productions as well as 13 percent of the employment in Iran's industry. The purpose of this paper is to investigate the short-run and long-run and asymmetric ...
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The basic metals industry is one of the most important national production industries, which includes approximately 20 percent of the industrial productions as well as 13 percent of the employment in Iran's industry. The purpose of this paper is to investigate the short-run and long-run and asymmetric effects of positive and negative monetary shocks through monetary policy transmission channels that including exchange rates, lending and credit and interest rates on the production and employment of this industry, which evaluated by Non-linear Auto Regressive Distribution Lag (NARDL) model, seasonally since 1997 to 2018. The effects of monetary shocks are classified in to two groups: positive and negative shocks by using Hodrick-Prescott filter. The outputs indicate that the monetary shocks are more effective on the production of basic metals industry than its employment in a long- run. Also effects of negative monetary shocks on the employment in this industry are more considerable than positive shocks during a short-run. In the end, the asymmetric effect of monetary shocks on the production of this industry is confirmed.
Monetary Shocks
Niloofar Sadat Hosseini; Hossein Asgharpur
Abstract
The purpose of this study is to study Taylor's theory and investigating the effect of monetary shocks on macroeconomic variables assuming the degree of exchange rate pass-through in different inflationary environments. In this study, the dynamic stochastic general equilibrium model for a small open economy ...
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The purpose of this study is to study Taylor's theory and investigating the effect of monetary shocks on macroeconomic variables assuming the degree of exchange rate pass-through in different inflationary environments. In this study, the dynamic stochastic general equilibrium model for a small open economy has been used. In this framework, effects of monetary shock were investigated in Iran during 1988:1˗2014:4. and the inflation regimes and the degree of exchange rate pass-through have been investigated using a smooth transmission regression model. The empirical findings show that Taylor's hypothesis is confirmed. In other hands, the degree of exchange rate pass-through is high in an economy with high inflation. Due to a monetary shock, volatility of macroeconomic variables is high, assuming a high degree of exchange rate pass-through in the inflationary environments.
Monetary policy
Reza Raei; Mohammad Javad Iravani; tirdad ahmadi
Volume 8, Issue 31 , June 2018, , Pages 29-44
Abstract
The study of the effect of monetary shocks through monetary policy transmission mechanism is one of the topics in the macroeconomic field that is divided into two main polepoints of the neoclassical (demand side) and nonneoclassical (supply side) perspectives. Researchers in different countries have ...
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The study of the effect of monetary shocks through monetary policy transmission mechanism is one of the topics in the macroeconomic field that is divided into two main polepoints of the neoclassical (demand side) and nonneoclassical (supply side) perspectives. Researchers in different countries have studied effects of monetary shocks through these channels on macroeconomics, but in domestic studies, the lack of simultaneous attention to the money neutarlity in the long run and the asymmetry of positive and negative shocks in the presence of monetary policy transmission mechanism is one of the main weaknesses in the discussion. This article is intended to fill this research gap with using the seasonal data of Iran's economy during the period of 1990 to 2016, to study the effect of monetary shocks through transmission channels on production. For this purpose, using the Markov Switching model, negative and positive shocks were extracted. Then, the results of the used model by auto regressive distributed lags method showed that three channels of exchange rate, housing prices and credits are incapable of transferring the effects of monetary policy in the long run. These findings validate long-term monetary neutrality. Also there is asymmetry between positive and negative shocks, and the credit chanel has a stronger role in transferring the monetary policy effects on the economy of Iran than the two other channels.
Hamed Sahebhonar; Ali Cheshomi; Mohammad Ali Falahi
Volume 3, Issue 11 , September 2013, , Pages 56-41
Abstract
Empirical studies show that money has real effects in short-run but is neutral in long-run. According to transmission chanels of monetary policy, there is a possibility that each sector has a different response to monetary shocks. This paper, using the BVAR method and seasonal data, investigates the ...
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Empirical studies show that money has real effects in short-run but is neutral in long-run. According to transmission chanels of monetary policy, there is a possibility that each sector has a different response to monetary shocks. This paper, using the BVAR method and seasonal data, investigates the sectoral effects of monetary shocks during 1988:Q2 to 2011:Q2. The results show that monetary shocks have real effects in short-run and the reaction of sectors are different. In addition, the effects of moneatary shocks on services and industry sectors are stronger than on agriculture sector.
