Although gold is no longer a central cornerstone of the international monetary and financial system, it still attracts considerable attention from researchers and investors. Nowadays, many investors manage their risk with valuable assets such as gold. This paper examines the dynamic relationships between gold and stock markets in the Tehran Stock Exchange. We have applied the Markov switching m...

We study the effects of the U.S. Federal Reserve’s Term Auction Facility (TAF) on globally active banks. We exploit a unique dataset with information on all foreign activities of German banks’ affiliates both, inand outside the US. All German parent banks with US affiliates tapped TAF liquidity, which mitigates self-selection concerns. This setting allows testing whether foreign affiliate activ...

The author presents a search-based model in which money coexists with equity shares on a risky aggregate endowment. Agents can use equity as a means of payment, so shocks to equity prices translate into aggregate liquidity shocks that disrupt the mechanism of exchange. The author characterizes a family of optimal monetary policies and finds that the resulting equity prices are independent of mo...

This study investigates monetary and financial shocks on macroeconomic variables, focusing on the role of banking intervention. For this purpose, a Keynesian dynamic stochastic general equilibrium (DSGE) model is designed for Iran’s economy that involves financial and banking sectors. The results of the model simulation show that the financial accelerator theory works in the Iranian economy. Al...

The fiscal theory offers an attractive perspective. First, with interest rates near zero, money and government bonds are nearly perfect substitutes, especially for the banks and financial institutions at the center of economic events. Conventional monetary policy analysis aimed at the split of government debt holdings between “monetary” and “debt” assets seems rather irrelevant; the big events ...

This paper studies the interaction between monetary and macro-prudential policies in a simple model with both nominal and financial frictions. The nominal friction gives rise to a conventional monetary policy objective emphasized in the New Keynesian literature. The financial friction, in the form of an occasionally binding collateral constraint, gives rise to a financial stability objective. ...

iranian banks can not freely determine their interest rates in the financial market. this characteristic causes banking industry unable to perform their duties of financial intermediaries in the transmission mechanism of monetary. in these circumstances, monetary shocks will have a significant and high effect on the alternative markets (like stocks and housing). in this study, we used dynamic s...