Volume 15, Issue 4 (2016)                   QJER 2016, 15(4): 193-216 | Back to browse issues page

‎ 20.1001.1.17356768.1394.15.4.1.3

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Jafari Samimi A, Tehranchian A M, Balounejad Nouri R, Ebrahimi E. Derivation of Phillips Curve Using an Open Economy Stochastic Dynamic General Equilibrium Model: Case Study Iran. QJER 2016; 15 (4) :193-216
URL: http://ecor.modares.ac.ir/article-18-1647-en.html
Derivation of Phillips Curve Using an Open Economy Stochastic Dynamic General Equilibrium Model: Case Study Iran
Ahmad Jafari Samimi1 , Amir Mansoor Tehranchian2 , Roozbeh Balounejad Nouri * 3, Eilnaz Ebrahimi4
1- Professor of Economics, Faculty of Economics, Mazandaran University, Babolsar
2- Associate Professor of Economics, Faculty of Economics, Mazandaran University, Babolsar, Iran
3- Ph.D. of Economics, Faculty of Economics, Mazandaran University, Babolsar, Iran
4- Faculty Member of Monetary and Banking Research Institute
Abstract:   (5698 Views)
In the present study, the New Keynesian Phillips Curve is derived for Iran using an Open Economy Dynamic Stochastic General Equilibrium model. Due to inflation persistence in Iran, a new hybrid Keynesian Phillips curve is estimated using Central Bank of Iran dataset during 1971-2011. The findings indicate that lagged inflation is more important than expected inflation in determining current period inflation. In addition, with reference to monetary shocks, the inflationary effects are greater than real effects. In other words, a monetary shock initially affects inflation more than output. Moreover, shocks on oil revenue and technology lead to increase in both output and inflation. A reduction in the nexus between monetary base and oil revenues, investment in research and development (R & D) and monetary discipline are policy recommendations of this research.  
Keywords: New Keynesian Phillips Curve, Inflation, Economy of Iran
Full-Text [PDF 430 kb]   (3943 Downloads)    
Article Type: Research Paper | Subject: E12 - Keynes; Keynesian; Post-Keynesian|E31 - Price Level; Inflation; Deflation|E52 - Monetary Policy
Received: 2013/09/3 | Accepted: 2014/01/1 | Published: 2016/01/21
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