T here is always uncertainty about the soundness of an economic model’s structure and parameters. Therefore, central banks normally face with uncertainty about the key economic explanatory relationships. So, policymaker should take into account the uncertainty in formulating monetary policies. The present study is aimed to examine robust optimal monetary policy under uncertainty, by ...

this paper analyzes the effects ofexchange policies on iran,s foreign trade, by applying new econometric techniques. in assessing the impacts of depreciation of the national currency on macroeconomic variable, the real rather than nominal exchange rate has been determined to be more appropriate criterion to demonstrate the success or failure ofthe adopted policies. during the period under the s...

The European Monetary Institute have narrowed down the choice of candidate strategies for a single monetary policy within European Monetary Union to inflation targets or monetary aggregate targets. In practice it is unlikely to be a simple choice between these targets, since all monetary authorities that currently pursue either of these strategies also monitor a wide set of economic and financi...

Price stability has been the foremost task of monetary policy. The information relating to the response of prices to monetary policy shocks is essential for conducting monetary policy in general and for inflation targeting of central banks in particular. Most of the published empirical studies analyze the response of an aggregate price index like CPI or a consumption deflator and their r...

in last 1990 decade and early 21 century due to high fluctuations in assets prices and occurring asset price bubbles, most studies in monetary economics has concentrated on the reaction of monetary policy to movement in asset prices. the purpose of this paper is to analyze the suitable reaction of monetary policy to movement in asset prices in iran. this analysis is based on the structural var ...

One approach to the relationship between trade and monetary zones is through recalling the three uses of money: means of settlement, numeraire, and store of value. The first two of these bring money and trade together, but the third is a separate matter. The rate of inflation can be chosen apart from the trade regime. For this reason it has not been self-evident whether the frontiers of monetar...

Abstract Large swings in capital flows into and out of emerging markets can potentially lead to excessive volatility in asset prices and credit supply. In order to lessen the impact of capital flows on financial instability, a number of researchers and policy markers have recently proposed the use of capital controls. This paper considers the benefit of adding capital controls as a potential in...

Abstract: The arisal of experimental systems to transfer value (digital cash) over the Internet is of interest to monetary policy circles. These systems claim to turn the International Financial System back to the days of free banking, with uncontrolled and rampant issue of currency by private banks. This paper argues that, in actuality, Internet cash issuance will not be a strong force, neithe...

A generic model for the monetary flow in multi-level marketing schemes for virtual goods, so called incentive management systems, is introduced and analysed. It is shown that such schemes can in principle be fair, and it is argued that they can be viably realised if the value of the distributed good is positive. It is shown how the monetary incentive a buyer receives through the scheme can be p...