Appendix to : Monetary Policy Rules and the Exchange Rate

The Effect of Exchange Rate, Oil Prices and Global Inflation Shocks on Macroeconomic Variables for the Iranian Economy in the form of a DSGE Model

T he world economy has experienced a bulk of positive and negative shocks in crude oil prices and exchange rates over the years, and that global inflation has undergone some changes. Such shocks have affected the macroeconomic variables in the countries of the world and have challenged the economies of these countries, and have led them to take different measures to protect themselves agai...

Modeling the foreign exchange market pressure in the monetary policy of the Iranian economy with a Dynamic Stochastic General Equilibrium approach

Exchange rate fluctuations and the degree of central bank intervention in the foreign exchange market through foreign reserves simultaneously determine the foreign exchange market pressure. This concept is considered as one of the important indicators related to the behavior of monetary authorities in policy-making, which affects other economic variables through foreign trade channels and infla...

Monetary policy and exchange rate overshooting in Iran: A Vector Errors Correction (VEC) approach

Assumption of exchange rate overshooting has significant position in international macroeconomic discussion. This phenomenon is one of the abnormal behaviors of exchange rate that happen in short run. Dornbusch (1976) shows that because speed of equilibrium prices is slow relative to asset markets and commodity prices are sticky in the short run, However, over time, commodity prices will rise a...

Appendix to : “ Monetary Policy Rules and the Exchange Rate ” Gianluca Benigno and Pierpaolo Benigno 1

The Impact of Monetary and Exchange Policies on the Country’s Trade balance Fluctuation with the Approach of Dynamic Stochastic General Equilibrium (DSGE) models

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 t...