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Evaluating the effects of rebalancing in money growth in Iran's economy with an emphasis on the second paragraph of the general policies of the 7th five-year plan (DSGE approach)
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Mahdi Khoshkhooy   |
| Assistant Professor, Faculty of Economics and Political Science, Shahid Beheshti University , m_khoshkhooy@sbu.ac.ir |
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Abstract: (5 Views) |
A review of the general policies of the country, especially the second paragraph of the general policies of the 7th five-year plan, in order to achieve the main characteristics of desirable monetary arrangements, indicates the necessity of ensuring stability through minimizing and eliminating inflation from the Iranian economy, and this is a serious matter that will not be achieved except by "creating a balance between changes in the amount of money and changes in the amount of production."
In this regard, the current article seeks to provide an appropriate answer to the question, "How will reducing the money growth rate until it is equal to the economic growth rate have an effect on the macroeconomic variables of Iran?".
The results of this study, which was carried out using the dynamic general equilibrium (DSGE) approach, show that the implementation of the target monetary policy leads to an increase in the equilibrium level of the variables of the real sector of the economy, including the amount of total production, employment, investment, capital accumulation and consumption. On the other hand, the reform of the foreign exchange policy along with the monetary policy and the allocation of surplus foreign exchange resources resulting from the reform of the monetary policy to foreign exchange and development investment, leads to the improvement of the total productivity in the economy and a double increase in the equilibrium values of the variables and the wage rate. while reducing the dependence of public welfare on oil revenues.
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Article number: 7 |
| Keywords: Growth of money supply, growth of production, inflation, dynamic general equilibrium, general policy |
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Full-Text [PDF 1560 kb]
(8 Downloads)
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Article type: Research |
Subject:
Special
Received: 2024/12/19 | Accepted: 2025/05/7 | Published: 2026/05/31
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