Volume 21, Issue 4 (2021)                   QJER 2021, 21(4): 6-6 | Back to browse issues page

‎ 20.1001.1.17356768.1400.21.4.7.1

XML Persian Abstract Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Zorriyeh Mohammadali F, Nahidi Amirkhiz M, Paytakhti Oskooe A, ranjpour R. The Response of Monetary and Fiscal Policies to the Output Gap in Iran with the Taylor Rule Approach: The Quantile Method. QJER 2021; 21 (4) :6-6
URL: http://ecor.modares.ac.ir/article-18-52428-en.html
The Response of Monetary and Fiscal Policies to the Output Gap in Iran with the Taylor Rule Approach: The Quantile Method
Faezeh Zorriyeh Mohammadali1 , Mohammadreza Nahidi Amirkhiz * 2, Ali Paytakhti Oskooe3 , Reza Ranjpour4
1- Ph.D. candidate in Economics, Islamic Azad University, Tabriz, Iran
2- Assistant Professor in Economics, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran , nahidi@iaut.ac.ir
3- Associate Professor in Economics, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran
4- Associate Professor in Economics, Department of Economics, University of Tabriz, Tabriz, Iran
Abstract:   (3141 Views)
One of the most important issues in monetary and fiscal policy analysis is their efficiency or effectiveness, which tells policymakers about effectiveness of policies. In general, the effectiveness or effectiveness of monetary and fiscal policies refers to the extent to which they affect equilibrium national output or income.  Therefore, in order to achieve its goals, the policymaker should be able to respond appropriately to the production gap and inflation accordingly, a policy rule covering the goals of the central bank should be used. In this study, in the framework of Taylor rule, the response of monetary and fiscal policies to the output gap has been investigated in the Iranian economy using the Quantile regression method over the period 1976-2018. The results show that by increasing the output gap in different quantities, monetary authorities do not show any reaction to the output gap. But government policymakers pursue an expansionary policy toward the output gap, which is contrary to Taylor's rule, and the results confirm that government policymakers make policy at their will.
Keywords: Taylor rule, Central bank response, Government response, Quantile regression, Output gap
Full-Text [PDF 1975 kb]   (2039 Downloads)    
Article Type: Original Research | Subject: Macroeconomics and Monetary Economics
Received: 2021/05/20 | Accepted: 2021/07/25 | Published: 2021/11/16
Add your comments about this article : Your username or Email:
CAPTCHA
Send email to the article author

Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.