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Paper Information

Journal:   JOURNAL OF ECONOMIC RESEARCH AND POLICIES   SPRING 2017 , Volume 25 , Number 81; Page(s) 123 To 153.
 
Paper: 

FINANCIAL SHOCKS AND THE ROLE OF MONETARY POLICY IN IRAN'S ECONOMY: INTERBANK MARKET IN DSGE MODEL

 
 
Author(s):  MOHEBBI SAM*, SHAHRESTANI HAMID, HOJABR KIANI KAMBIZ
 
* OLUM TAHGHIGHAT AZAD UNIVERSITY TEHRAN, NO 2584 VALIASR AVE,TEHRAN, IRAN
 
Abstract: 

Banking sector as one of the most important sectors in Iran's economy plays a major role in general equilibrium and transmission of various shocks in the society. In this paper, to address the role of the banking system in the transmission of shocks, we design a DSGE Model with introducing interbank market and considering endogeneity of the default probability in banking sector and firms. Analyzing the effects of productivity and stock market shocks on real variables indicates that the adopted model is well-matched with theoretical expectations and Iran’s economic facts. The results of the model support the importance of the banking sector in the transmission of shocks and also confirm that central bank plays a critical role to mitigate the effects of the shock through injecting liquidity into the interbank market.

 
Keyword(s): INTERBANK MARKET, PROBABILITY OF DEFAULT, MONETARY POLICY, CAPITAL ADEQUACY, DSGE MODEL
 
 
References: 
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Cite:
APA: Copy

MOHEBBI, S., & SHAHRESTANI, H., & HOJABR KIANI, K. (2017). FINANCIAL SHOCKS AND THE ROLE OF MONETARY POLICY IN IRAN'S ECONOMY: INTERBANK MARKET IN DSGE MODEL. JOURNAL OF ECONOMIC RESEARCH AND POLICIES, 25(81), 123-153. https://www.sid.ir/en/journal/ViewPaper.aspx?id=545684



Vancouver: Copy

MOHEBBI SAM, SHAHRESTANI HAMID, HOJABR KIANI KAMBIZ. FINANCIAL SHOCKS AND THE ROLE OF MONETARY POLICY IN IRAN'S ECONOMY: INTERBANK MARKET IN DSGE MODEL. JOURNAL OF ECONOMIC RESEARCH AND POLICIES. 2017 [cited 2021April16];25(81):123-153. Available from: https://www.sid.ir/en/journal/ViewPaper.aspx?id=545684



IEEE: Copy

MOHEBBI, S., SHAHRESTANI, H., HOJABR KIANI, K., 2017. FINANCIAL SHOCKS AND THE ROLE OF MONETARY POLICY IN IRAN'S ECONOMY: INTERBANK MARKET IN DSGE MODEL. JOURNAL OF ECONOMIC RESEARCH AND POLICIES, [online] 25(81), pp.123-153. Available at: <https://www.sid.ir/en/journal/ViewPaper.aspx?id=545684>.



 
 
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