Volume 21, Issue 2 (2021)                   QJER 2021, 21(2): 83-116 | Back to browse issues page

‎ 20.1001.1.17356768.1400.21.2.7.7

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Hagehashemi E, Mansouri N, sadeghi Amroabadi B, Fadae M. Analysis of the Effect of Central Bank Transparency on Exchange Rate Fluctuations in the Iranian Economy. QJER 2021; 21 (2) :83-116
URL: http://ecor.modares.ac.ir/article-18-48188-en.html
Analysis of the Effect of Central Bank Transparency on Exchange Rate Fluctuations in the Iranian Economy
Elham Hagehashemi1 , Nasrin Mansouri2 , Behrouz Sadeghi Amroabadi3 , Mehdi Fadae * 4
1- M.A. of Economics, Payame Noor University , Iran
2- Assistant Professor of Economics, Payame Noor University, Iran
3- Assistant Professor of Economics, Shahid Chamran University , Ahvaz, Iran
4- Assistant Professor of Economics, Payame Noor University, Iran , fadaeemahdi@phd.pnu.ac.ir
Abstract:   (2181 Views)
Exchange rate is one of the most influential factors affecting Iran's macroeconomic variables. Exchange rate fluctuations in Iran have always been one of the major challenges for policymakers. On the other hand, many central banks today consider transparency as one of the main and vital priorities in achieving the effectiveness of monetary policy and communicating effectively with the people and being accountable. This transparency can affect macroeconomic expectations and the exchange rate. In this study, the effect of central bank transparency on exchange rate fluctuations is investigated using the ARDL method over the period 1981-2018. This study is based on analytical, applied and correlational research methods, which uses time-series econometric regression model. The transparency of the central bank, as independent variable, is measured by Dincer & Eichengreen index, and exchange rate fluctuations, as dependent variable, are constructed by GARCH method. The results show that the transparency of the central bank reduces exchange rate fluctuations in both short run and long run, and there is a long-term synergistic relationship between research variables.
Keywords: Dincer & Eichengreen index, Transparency, Central bank, Exchange rate, Fluctuations
Full-Text [PDF 1123 kb]   (1447 Downloads)    
Article Type: Original Research | Subject: Macroeconomics and Monetary Economics
Received: 2020/12/6 | Accepted: 2021/02/9 | Published: 2021/06/20
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