Document Type : ORIGINAL ARTICLE

Authors

• salman sotoudeh nia korani ¹
• Batool Shafiezad Abkenar ²

¹ Department of Economic Bandar Abbas Branch,Islamic Azad University, Bandar Abbas , Iran

² Department of Economic Bandar Abbas Branch,Islamic Azad University,Bandar Abbas , Iran

Abstract

Economic uncertainty is a major challenge in economic policymaking and economic growth in Iran. In uncertain conditions, investors may be inclined to transfer their capital to other countries, which can lead to a decrease in the money supply and, as a result, a decrease in economic growth. The aim of the present study was to study the effect of uncertainty on economic growth and monetary policies in Iran. In order to study the effect of uncertainty on the efficiency of monetary policy and economic growth, the interaction vector autoregression (IVAR) methodology used by Astwain et al. (2017: 62) was used. The results of the study showed that economic uncertainty significantly affects monetary policies and economic growth in Iran. To reduce the negative effects of economic uncertainty, there is a need for coherent policy planning and the creation of public trust. In particular, the government and economic policymakers should seek solutions that will gain investor confidence and provide the necessary conditions for sustainable economic growth. This paper can also be used as a theoretical basis for future research on the impact of economic uncertainty on monetary policies and economic growth in similar countries.

Keywords

• Economic uncertainty
• economic growth
• monetary policy

Main Subjects

• Economic Growth