The effect of monetary policy on private sector investment in Iran (Using ARDL technique)
Subject Areas : Applied Economicsکامبیز پیکارجو 1 , پاتریس امیرخانی 2
1 - ندارد
2 - مسئول مکاتبات
Keywords: Monetary policy, private sector investment, ARDL,
Abstract :
In today's world one of the objectives of any government is to achieve economic stability, soeconomic policy making should be suitable with the economic conditions that require the government conscious intervention to achieve macroeconomic goals. One of the basic and important principleseconomic policy of decision making is to examine the effects of monetary and fiscal policies on the economic and non-economic variables. Monetary policy is now one of these policies that is used as a tool for achieving economic purposes in developing countries. Some analysts believe that the effect of economic shocks on macroeconomic variables such as production, inflation and unemployment, can be least, if we use the tools correctly. On the other hand, investment is a driving force for growth and development in the economic literature. In fact, one of the variables that can change in monetary policy changes, along with other macroeconomic variables changes, is investment. Private sector investment is a part of total investment that monetary policy can make many changes in it. The purpose of this paper is to examine the effects of monetary policy on private investment in Iran will be analyzed in this research during 1357-1389, via three variables: the liquidity, GDP and real interest rates. The results show that there is a significant positive relationship between liquidity and real interest rates on private investment, and also there is a significant negative relationship between GDP and private investment in the long run in Iran.
