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:: Volume 27, Issue 92 (Quarterly journal of economic research and policies 2020) ::
3 2020, 27(92): 373-406 Back to browse issues page
The Impact of Monetary and Exchange Policies on the Country’s Trade balance Fluctuation with the Approach of Dynamic Stochastic General Equilibrium (DSGE) models
Yousef Albaji , Karim Azarbyjani, Saeed Daii Karimzadeh
, albaji2013@gmail.com
Abstract:   (278 Views)
This paper uses the framework of new Keynesian school and the literature of the Dynamic Stochastic General Equilibrium (DSGE) model to build a general model that can be estimated for Iran economy. By simulating this model, the effects of the implementation of monetary and foreign exchange policies through policy instruments including bank interest rate, central bank international reserves and the nominal exchange rate are  evaluated on macroeconomic variables such as real trade balance, production gap, inflation rate, real exchange rate and foreign assets. Monetary and foreign exchange policies are arranged in the form of simple rule policy, and under three foreign exchange policies including managed, floating and pegged exchange rate regimes. The results show that monetary and foreign exchange policies have an effect on the stability of variables related to foreign sectors (real trade balance, real exchange rate, foreign assets and …).  Also in comparison with other alternative regimes, central exchange regime (managed) scenario is in priority and leads to less fluctuations in the model's endogenous variables.
 
Keywords: Commercial Balance, Dynamic Equilibrium General Equilibrium Models (DSGE), Monetary and Currency Policy, Stable Equilibrium Mode
Full-Text [PDF 1168 kb]   (101 Downloads)    
Type of Study: Research | Subject: Special
Received: 2019/07/2 | Published: 2020/03/19
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Albaji Y, Azarbyjani K, Daii Karimzadeh S. The Impact of Monetary and Exchange Policies on the Country’s Trade balance Fluctuation with the Approach of Dynamic Stochastic General Equilibrium (DSGE) models. 3. 2020; 27 (92) :373-406
URL: http://qjerp.ir/article-1-2452-en.html


Volume 27, Issue 92 (Quarterly journal of economic research and policies 2020) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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