The effective determinants of exchange rates in Iran

Subject Areas : Futurology

M.  Sharif Azadeh ¹ (ندارد)
Ali  Haghighat ² (ندارد)

Received: 2015-01-14 Accepted : 2015-01-14 Published : 2005-09-23

Keywords: Nominal exchange rate, real exchange rate, money growth rate, Johansen technique, price of oil, Openness, price of gold. Monetarists’the,

Abstract :

The purpose of this paper is the investigation of the (nominal and real) exchange rates determinantsin Iranian economy. After investigate and determine the effective factors of the exchange rates , byusing of time series data –1340 to 1379 - , the proposed models are estimated by traditionaleconometrics methods and the new approaches in econometrics –AEG,DW and Johansencointegration techniques. For this aims , we study and analysis the following subjects:1) The effect of money growth rate, interest rates and GDP on the exchange rate in Iran – test ofmonetarists theory in Iranian economy.2) The effect of other variables – such as : government expenditures , budget deficit, price of oil,investment, inflation, openness , productivity, terms of trade, the price of gold and the populationgrowth rate- on the exchange rates in Iranian economy.3)The test of PPP theory in Iranian economy.Finally, we offer the conclusions, and some implications will recommended.