- Autor
- Mehrara Mohsen (Faculty of Economics, University of Tehran, Tehran, Iran), Sujoudi Ahmad (Islamic Azad University Isfahan, Iran, student)
- Tytuł
- The Relationship between Money, Government Spending and Inflation in the Iranian Economy
- Źródło
- International Letters of Social and Humanistic Sciences (ILSHS), 2015, vol. 51, s. 89-94, tab., bibliogr. 9 poz.
- Słowa kluczowe
- Ekonometria bayesowska, Inflacja, Podaż pieniądza, Gospodarka, Wydatki państwa
Bayesian econometric, Inflation, Money supply, Economy, Government spending - Uwagi
- summ.
- Kraj/Region
- Iran
Iran - Abstrakt
- Inflation is one of the important macroeconomic variables that has a close relationship with many of the real and monetary variables and has unfavorable effects such as loss of productivity, reduction of economic growth, and rise of economic inequality. Therefore, the reduction of inflation has always been the most important economic objective of policy makers. The main objective of this study is to examine the relationship between, inflation, money supply and government spending in Iran during the period 1959-2010. To that end, Bayesian econometric approach was used. The results of the Bayesian Model averaging method imply that the growth rate of money, economic growth rate, inflation rate, the logarithm of the ratio of liquidity to GDP, and growth in energy prices had a significant positive significant effect on inflation. Among these 3 variables, growth rate of money has the highest impact on inflation. The results showed that the growth rate of government spending, GDP growth rate and the exchange rate had no significant effect on the inflation. Therefore, the study recommends controlling the inflation through decline in liquidity growth rate, and energy prices. (original abstract)
- Pełny tekst
- Pokaż
- Bibliografia
-
- Samadi, AS. E. Haghighat AS. Amin Zadeh K. (2006), inflation, productivity and structural failure, empirical evidence of the economy from 1959 to 2001, Journal of Economic Research, No. 27, Summer, pp. 65-87.
- Azizi F. (2006), deficits and inflation in Iran, 1975-2004, Economic Essays Autumn and winter, 2006, 3 (6): 189-214.
- Mostafavi, M. (2007) investigates the causal relationship between money and inflation in Iran, Journal of Quantitative Economics, Journal of Economic Studies; 3(14): 3-17.
- Agayev Seymur (2011), "Exchange Rate, Wages, and Money; What Explains Inflation in CIS Countries", EuroJournals Publishing",Vol.1, 6-13.
- Andersson M., Masuch K. and Schiffbauer M. (2009), "determinants of inflation and price level differentials across the Euro area countries", Working paper series, no. 1129/ December.
- Aurangzeb and Anwar Ul Haq (2012), "Determinants of Inflation in Pakistan", Universal Journal of Management and Social Sciences, vol. 2, no.4; 23-40.
- Bashir Furrukhand et al.(2011), "determinants of inflation in Pakistan: aneconometric analysis using Johanson cointegration approach", Australian Journal of Business and Management Research,1(5). pp.71-82.
- Romer, C. and Romer, D. (1989), "Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz", NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, pages 121-184 National Bureau of Economic Research, Inc.
- Yashioka S. (2002), "Estimation of output gap in southeast Asian countries, state space model approach", Tsd Discussion Paper, no.2.
- Cytowane przez
- ISSN
- 2300-2697
- Język
- eng
- URI / DOI
- https://doi.org/10.18052/www.scipress.com/ILSHS.51.89
