Explaining Monetary Base and Government Expenditure Variations in Iran (in Persian)

Ramin Mojab (), Seyyed Mahdi Barakchian () and Farhad Nili
Additional contact information
Ramin Mojab: Iran
Seyyed Mahdi Barakchian: Iran
Farhad Nili: Iran

Journal of Monetary and Banking Research (فصلنامه پژوهش‌های پولی-بانکی), 2013, vol. 6, issue 17, 1-16

Abstract: The goal in this research is to obtain some stylize facts about the nature of monetary and fiscal policies in Iranian economy. Different economic and political factors are selected as the potential explanatory variables in monetary base (MB) and government expenditure (GE) regressions and the posterior inclusion probabilities are calculated using a Bayesian model averaging approach. The results show that oil revenue is dominant in GE variations, GE and MB are not sensitive to output variations of different sectors, GE is not sensitive to a change in inflation, MB increases when inflation rises and MB growth rate is higher in average during 2005-2010 period. Therefore, it seems that the policy makers respond to a change in output and prices are not consistent with the macroeconomics recommendations and the economic attitude of the president is more effective. Keywords: Monetary Policy, Fiscal policy, Oil Revenue, Inflation, Output Growth, Bayesian Model Averaging JEL Classification: C11, O04, E62, E52

JEL-codes: C11 E52 E62 O40 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://jmbr.mbri.ac.ir/article-1-305-en.pdf (application/pdf)
http://jmbr.mbri.ac.ir/article-1-305-en.html (text/html)
http://jmbr.mbri.ac.ir/article-1-305-fa.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mbr:jmbres:v:6:y:2013:i:17:p:1-16

Access Statistics for this article

More articles in Journal of Monetary and Banking Research (فصلنامه پژوهش‌های پولی-بانکی) from Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran Contact information at EDIRC.
Bibliographic data for series maintained by M. E. ().