The effect of financial policy on the price of financial assets in Iran (with an emphasis on exchange rates)
مجید محمدمیرزائی داریان
1
(
علوم اقتصادی دانشگاه آزاد واحد زنجان
)
Yadollah Rajaei
2
(
Department pf economics, Zanjan branch, Islamic Azad University, Zanjan,Iran
)
احمد نقی لو
3
(
گروه اقتصاد، دانشکده اقتصاد ، دانشگاه آزاد اسالمی واحد زنجان،ایران،
)
Keywords: exchange rate, financial policy, asset price.,
Abstract :
One of the important and influential topics in economic issues is the asset market. Theoretically, if the asset market is efficient in terms of information and people behave rationally, asset prices reflect the available information about expected events. On the other hand, one of the important issues that is widely discussed in macroeconomics is the selection of appropriate policies and tools to eliminate imbalances and create economic stability. Because, due to the transparency of information, liquidity, the existence of speculators and investors with different decisions, as well as having long-term memory, financial markets always have complex behavior and many turbulences. The approach used in this article in order to investigate the effect of financial policy on the price of financial assets in Iran (with an emphasis on the exchange rate) is the TAR threshold self-return model.The data were collected seasonally in the period from April 2010 to Spring 2010. The results of the analysis of the TAR model showed that there is a non-linear relationship between the research variables, and two thresholds were estimated for the production of domestic waste (-2130 and 15460); which shows the different effect of the variables of GDP, inflation rate, car index of oil income in high, medium and low regime (threshold levels of -2130 and 15460) on the exchange rate.