this research follows two aims in case of the iranian economy. first, study of the presence of inflation persistency, and second, looking for an optimal monetary policy rule. results show that inflation in the economy of iran is persistent, in which, short-term and long-term effects of monetary policy should be considered. for this purpose, a loss function for the central bank with arguments of...

This article examines the relationship between inflation and inflation uncertainty in the Turkish economy in this period 2004:01-2014:12. This relationship is explored in two ways: a) with the effect of structural breaks; b) without the effect of structural breaks. In fact, with regard to the main structural break have occurred over this period, we examine whether structural break has affected ...

The real rate of interest indicates borrowing costs (or the return on an investment in financial assets), disregarding price increases. The expected real interest rate is important to investments, consumption and savings, and is therefore significant in the evaluation of economic prospects. The problem is that since the inflation expectations of investors and borrowers are not known, it cannot ...

the purpose of this paper is to estimate the welfare cost of inflation in iran. we first use the long-horizon regression approach developed by fisher and seater (1993) to obtain an estimate of the inflation rate elasticity of money demand and then the baily’s consumer surplus approach to calculate the welfare cost function. the results show that reducing inflation rate from 40% to 0% increases ...