1. Introduction and Executive Summary This paper analyses the role of the central bank in the modern world, focusing in particular on its involvement in the payments and …nancial systems. I provide an overview of the functions of central banks. I then focus on the role of the central banks in promoting an e¢ cient payments system and I disucuss their role in supervising and regulating the payme...

This study aimed to examine the effects of monetary policy on macroeconomic variables with regard to the collateral constraint. For this purpose, a dynamic stochastic general equilibrium (DSGE) was developed for Iran’s economic status. Two scenarios were considered as to account for the behavior of the central bank. In the first scenario, the monetary rule is modeled according to the GDP gap an...

The history of monetary policy in Iran, judging by their performance in keeping the value of the currency, maintaining a steady growth in the Gross Domestic Product, faltering investment, show that monetary policy has not been a portrait of consistent successes, to say the least. As a result of the recent studies two rules have emerged as guideline for policy makers: Taylor rule and McCallum ru...