The purpose of this paper is to investigate the inflation persistency regarding the heterogeneous behavior of economic agents. For this, the data were used from 1991-2015 based on seasonal data and Dynamic Stochastic General Equilibrium models. The innovation of this pa More
The purpose of this paper is to investigate the inflation persistency regarding the heterogeneous behavior of economic agents. For this, the data were used from 1991-2015 based on seasonal data and Dynamic Stochastic General Equilibrium models. The innovation of this paper is Calvo pricing assumption regarding the lag in inflation rate and indexing parameter in which inflation persistency conditions computing will be more relevant to Iran’s economy. The results showed that inflation expectations have a major role in inflation rate formation so that even if the inflation rate declines it will occur in a longer time due to inflation persistency. It, was cleared the prices have less reaction ability in relation to inflation persistency. It is suggested to the monetary authorities by considering the domestic inflation targeting rule in addition to inflation control, they stabilize the domestic production in the natural level in which it is required the monetary authorities to have credibility in views of economic agents.
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The aim of this paper was survey of the government's current and development expenditure impact on private consumption and investment in Iran economy. In this study, Factor Augmented Vector Autoregressive method was used on the base of seasonal data frequency in the per More
The aim of this paper was survey of the government's current and development expenditure impact on private consumption and investment in Iran economy. In this study, Factor Augmented Vector Autoregressive method was used on the base of seasonal data frequency in the period 1370-1394.The results showed that the government's current and development expenditure have a complementary effect on private consumer spending; but government expenditure in two current and development sectors has had a substitutional effect on private investment. According to the results, it is suggested that in order to boom and economic development in various economic sectors, the government deal with infrastructure expenditure and on the other hand, help by increasing private investment subject to no budget deficit increase.
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