How do financial frictions affect the optimal inflation rate? Can financial frictions alone annul the long-run super-neutrality of money? Should the inflation rate be higher in emerging market economies with less developed financial markets than in advanced economies, as is currently observed? To answer these questions we set up an incomplete markets model in which households choose portfolios ...

abstract t he relationship between public sector deficits and inflation is one of the important and controversial issues in the academic literature as well as in economic policy field. on the other hand, a major objective of macroeconomic policies is to foster economic growth and to keep inflation on a low level. so keeping the price stability plays an important role in determining the growth r...

the main goal of this research is studying the causative & effect of deficit budget, money offering and inflation rate in iran during 1360-1390. the results in long time indicates that the bulk of money has had positive effect & meaning on inflation rate during that time and alteration of budget deficit of the government has also positive effect on inflation but by meaningless impress, in other...

t he investigation of exchange rate pass-through is an important issue in international finance. the relationship between exchange rate pass-through and exchange rate arrangements such as the dollarization regime has been examined in recent decades. for this purpose, the main objective of this study is to investigate the effect of exchange rate pass-through on the domestic inflation in selecte...

Observed inflation targets around the industrial world are concentrated at two percent per year. This chapter investigates the extent to which the observed magnitudes of inflation targets are consistent with the optimal rate of inflation predicted by leading theories of monetary nonneutrality. We find that consistently those theories imply that the optimal rate of inflation ranges from minus th...

This paper focused on developing a model to study the effect of sukuk issuance on the inflation rate in top sukuk issuing Islamic economies at 2014‎. ‎For this purpose‎, ‎as the available sample size is small‎, ‎a Bayesian approach to regression model is used which contains key supply and demand side factors in addition to the outstanding sukuk volume as potential determinants of inflation rate...

The aim of this study is to examine the nonlinear effects of fiscal and monetary policies on inflation during 1990:3 to 2013:1 based on threshold model. First lag of the liquidity growth is recognized as threshold variable with threshold value estimated at 6.37 percent. In low liquidity growth, the results indicate that inflation expectations and the lagged liquidity growth are the most importa...