The analysis in earlier chapters was conducted within the context of a closed economy. Many useful insights into monetary phenomena can be obtained while still abstracting from the linkages that tie di¤erent economies together, but clearly many issues do require an open-economy framework if they are to be adequately addressed. New channels through which monetary factors can in‡uence the economy...

the financial crisis of 2007 showed that the impact of financial markets on macroeconomic developments is deep. the labor market was affected by financial variables. this paper extends the new keynesian model of a stochastic dynamic general equilibrium (dsge) for the iran economy in three context of an open economy, consider a financial frictions and frictions labor market, the impact of financ...

Oil price shocks are the major source of economic instability in oil exporting developing countries, including Iran. In this paper a Multi Sector Dynamic Stochastic General Equilibrium model, with emphasis on optimization of oil sector as a producing sector is designed. Furthermore, an optimizing import sector is introduced into the model by considering the price rigidity in imported goods as a...