آنالیز نقش سیاست پولی نامتعارف با استفاده از شاخص شرایط مالی: رهیافت خودرگرسیون برداری بیزی

Analysis of the role of Unconventional Monetary Policy Using the Financial Conditions Index: The B-VAR Approach

Seyed Hossein Mirjalili, Mosayeb Pahlvani, Hadiseh Mohseni and Mohamad Nabi Shahikitash

MPRA Paper from University Library of Munich, Germany

Abstract: The central banks typically respond to inflationary fluctuations and production gaps by using monetary policy tools. The financial crisis in 2007 indicated that the monetary policy of central banks and pricing tools used to stabilize the economy have not been effective. Thus central banks utilized unconventional monetary policy to achieve financial stability the index of financial conditions indicates the financial climate affecting firms and households. This paper aims to identify and analyze the channel of monetary policy transmission and estimate the effect of the index of financial conditions on Iran's economic activity during the 2005-2017 period. Then, using the forward and backward distribution in the Bayesian VAR model, the impulse variables and immediate response to the financial condition indicator in the period under review are estimated. The findings of the paper indicate that financial conditions have negatively affected GDP and private sector investment, and credit growth has played a significant role in the financial condition index.

Keywords: Credit; Easing; Iranian; Economy; Bayesian-VAR; Model; Macro; Variables (search for similar items in EconPapers)
JEL-codes: E17 E52 (search for similar items in EconPapers)
Date: 2019-01, Revised 2019-04
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Published in Journal of Economics and Modelling 37.10(2019): pp. 211-240

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:125510

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