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...

Search models of monetary exchange commonly assume that terms of trade in decentralized markets are determined via Nash bargaining. Bargaining frictions add to the classical intertemporal distortion present in most monetary models, whereby agents work today to obtain cash that can be used only in future transactions. More important, bargaining frictions may cause underproduction in decentralize...

Joint modelling of fiscal and monetary policies should elucidate on their interaction. We estimate a large parsimonious structural vector equilibrium correction model (PSVECM) to analyse the dynamics of eight variables from the US economy. Shocks to fiscal and monetary variables reveal interesting observations, with the results broadly in agreement with economic theory. A shock to only governme...

This article's main goal is to evaluate the degree of fiscal dominance in Uruguay 1999-2019 improve understanding economic policy for theoretical reasons and applied needs related good practices accountability. Two strategies are followed: one, quantify fraction expenditures that financed by monetary liabilities and, other analyze effects deficit on price level inflation because inflationary fi...

the aim of this paper is to investigate the existence of the new non-ricardian regime policy in iranian economy. we detected signs of the non-ricardian regime from quarterly data of 1369 to 1391. to investigate further a dynamic stochastic general equilibrium model is designed to estimate the fiscal and monetary parameters using a bayesian approach. our results indicated a passive monetary poli...

This paper uses a New Keynesian framework to study the coordination of fiscal and monetary policies, in response to an inflation shock when the policymaker acts with commitment. We first show that, in the simplest New Keynesian model, fiscal policy plays no part in the optimal policy response, because of the comparative advantage which monetary policy has in the control of inflation. We the...

This paper explores the constraints imposed by expectations formation on the effectiveness of stabilization policy. Agents have incomplete information about the economic environment and form beliefs by extrapolating from observed patterns in historical data. Regimes with Ricardian fiscal policy (as in the standard account of monetary policy design) and also non-Ricardian fiscal policy are consi...

This paper studies the institutional design of the coordination of macroeconomic stabilization policies within a monetary union in the framework of linear quadratic differential games. A central role in the analysis plays the partitioned game approach of the endogenous coalition formation literature. The specific policy recommendations in the EMU context depend on the particular characteristics...