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...

Monetary environment as the core of financial system has been functionally designed in light of the new set of extensive goals including financial stability, sustainable noninflationary growth, external sustainability, and price stability. A comprehensive monetary policy framework is proposed for Iran which systematically include the new goals, stance variables, instruments, transmission mechan...

abstract today, debt stabilization in an uncertain environment is an important issue. in particular, the question how fiscal and monetary authorities should deal with this uncertainty is of much importance. especially for some developing countries such as iran, in which on average 60 percent of government revenues comes from oil, and consequently uncertainty about oil prices has a large effect ...

the present paper examines the mitigating effect of monetary and fiscal policies on the “growth laffer curve” (glc) using a panel data of 38 high income countries over the period 2003-2012. adopting generalised method of moments (gmm) estimators, the paper finds evidence substantiating the presence of an inverted-u glc. moreover, the evidence suggests that the glc shifts downward by employing e...

There have been two broad theories of inflation, namely the demand-pull theory of inflation (that is nowadays mainly the monetary theory of inflation) and the cost-push theory of inflation. The mainstream macroeconomics views inflation as a monetary phenomenon in the long run. Iran has experienced double-digit rates of inflation for about four decades. Our main aim is an explanation for the lon...

a r t i c l e i n f o JEL classification: E31 E52 E61 F33 F41 Keywords: Currency union Optimal monetary policy Redistributive monetary policy Financial frictions Interest rate spreads Spread-adjusted Taylor rule We introduce " financial imperfections " – asymmetric net wealth positions, incomplete risk-sharing, and interest rate spreads across member countries – in a prototypical two-country cu...

This paper characterises optimal monetary policy in an economy with endogenous …rm entry, a cash-in-advance constraint and preset wages. Firms must make pro…ts to cover entry costs; thus the markup on goods prices is e¢cient. However, because leisure is not priced at a markup, the consumption-leisure tradeo¤ is distorted. Consequently, the real wage, hours and production are suboptimally low. D...