An Analysis of Main Economic Policies of Islamic Republic of Iran, for Period 1368-1378

Subject Areas : Futurology

Hossein Namazi ^{1 *}

1 - ندارد

Received: 2015-02-22 Accepted : 2015-02-22 Published : 2000-03-20

Keywords:

Abstract :

Theoretical studies as well as observations of Iranian economy do not necessarily signify a positive correlation between increasing the exchange rate and the volume of nonoil exporting goods in Iran, during 1368-1378. This study confirms researches done by western economists, in countries such as the United States, Canada, and etc, which indicate the rate of variations in savings is independent of interest rates; for specified periods. This study also shows that despite the positive correlation between the volume of liquidity and quantity of banking deposits, there is no significant relationship between the interest rate and the volume of savings, in Iran. In such a context, higher interest rates cause higher cost of goods sold, which in turn, through supply and demand mechanism, lowers the volume of investments. From fiscal policy viewpoint, this study also examines the impact of exchange rates on government deficit, on the basis of government as well as corporate net debts to central bank.