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Showing 20 results for Money
Volume 7, Issue 1 (4-2003)
Abstract
Mohammad Hadi Sadeghi Associate Professor department of Law, Shiraz University Although the victim consent of a crime has no legal effect on the criminal prohibitory character of the wrong committed by the offender, it can prevent the establishment of the right to retaliate or can cause the waiver of the right. This is due to the fact that the right to request retaliation originally belongs to the victim and it then passes to his family. Hence, the victim has a priority to waive the right. In addition, due to the voluntary character of the committed offence, based on the consent of the victim, no mulct (blood-money) is proven. The offender, therefore, can be sentenced to other forms of punishment merely on the basis of the committed act and not the resulted consequence.
Saeed Samadi, Khadijeh Nasrollahi, Mortaza Karamalian Cichani,
Volume 7, Issue 3 (10-2007)
Volume 7, Issue 3 (10-2007)
Abstract
Financial markets play a vital role in supplying and facilitating the flow of funds into production and industry sectors of economy and can result into the acceleration of economic growth. Indeed, many experts believe that the development of financial markets acts as the engine for growth. The main objective of this paper is analyzing the relationships between financial market development and economic growth through focusing on Iranian economy and thirteen other countries for the period 1988-2003. In this regard in addition to the Beck and Levin model (2003), we have used three versions of Granger–Casualty approach, Cointegartion test and panel data estimation procedure. Casualty test shows that in Iran, bank and stock market size have no strong effect on economic growth despite the fact that the effect of economic growth on stock market is positive and meaningful. The results of panel data estimation revealed that in real terms, investment and labor force, positively and strongly affect economic growth. In the money sector, the effects of banking system are statistically acceptable, although the positive effect of stock market is not statistically acceptable. The absence of Long–run co integration relation between financial markets and economic growth for the period 1976-2003 is the result of Auto-Regressive Distributed Lag Estimation. In sum, the long – run relation between money market and economic growth is negative and this true for the Iranian economy.
Rahim Dalali Esfehani, Hooshang Shajari, Mohsen Renani, Sohrab Delangizan,
Volume 8, Issue 1 (4-2008)
Volume 8, Issue 1 (4-2008)
Abstract
The locus paper in topic “Expectations and Neutrality of Money” (1972) is a seminal paper. This article was written in Over Lapping Generation (OLG) model with received from rational expectations and to draw up in stochastically mathematic. Results of this paper were reference to Phillips Curve as a solution of the equilibrium systems. From Lucas paper time to now, many of studies was proceed to Lucas model and results, But nor of them no attention to his results in non stochastic space, stochastic allocation of old people and growth existence in labor force. Central question of our study is test of results and behavior of Locus base model with these subjects. Method of our study is using of mathematical solutions and foundation analysis. The most important result of our study is this: The results of this study by criticism and expansion in Lucas model will acquire some of contributions in OLG models. This results show that some of Lucas results will impressible when we change its basic assumption, but we can’t use Lucas results in price equation for supported and analysis of classical school theorems.
Seyyed Safdar Hosseini, Toktam Mohtashami,
Volume 8, Issue 3 (10-2008)
Volume 8, Issue 3 (10-2008)
Abstract
The theory of quantity of money in that there exists a one-to-one relation between money growth and inflation, that means a highly and a continuous of rate of money growth leads to a high rate of inflation. During the recent years with the divergence of growth of money from inflation in the Iran economy leads to the opinion that an interruption has occurred between the growth of money and inflation. By the way, the main objective of this paper is to investigate the relationship between the growth of money and inflation by using the data of the 1350-2005 periods. The model that was used to investigate the relation of growth of money and inflation is a model that stemmed from quantity theory of money and is combining with the Phillips curve to model inflation to be linked trough expectations. The results revealed there exist a stable relationship between the growth of money and inflation and this states that in the long run one percent increase in the growth of money will increase inflation by 0.89 percent.
Mohammad Ali Moradi, Masoumeh Tajick Khaveh,
Volume 10, Issue 4 (1-2011)
Volume 10, Issue 4 (1-2011)
Abstract
Due to the poor development of the domestic financial markets in Iran, a lack of efficient tax system and some restrictions on foreign borrowing in recent decades, the government budget deficit was mainly financed through borrowing from either the central bank or through the selling of the oil revenue dollars to the central bank, both of which led to increased monetary base. It caused to increase the rate of inflation as well. While printing money creates revenue through seigniorage for the government, it decreases the purchasing power of the money and people prefer to hold less cash money because of the inflationary effects of monetization of budget deficit and finally it will reduce the seigniorage revenue of the government. The aim of this article is to analysis seigniorage revenue in Iran using money demand function approach. The Johansen-Juselius Cointegration technique is used to estimate the empirical model using annual data over the period 1961-2007. The results of estimates show that semi elasticity of inflation rate is negative of 5/59 and the elasticity of GDP per capita is positive of 2/36 in long run. After first oil boom, seigniorage-maximizing rate of inflation, except during the period of war, is lower than the actual rate of inflation. According to the result, the economy is generally on the wrong side of the Laffer curve. The result does not depend on whether the expectations of agents form adaptively or rationally.
Ali Falahati, Kiomars Sohaili, Farzad Noori,
Volume 12, Issue 3 (9-2012)
Volume 12, Issue 3 (9-2012)
Abstract
Achieving a high and sustainable economic growth has always been the main target of economic plans in different countries. Proving a positive relationship between financial development and economic growth by many studies has convinced the researchers to study the effective factors on the growth and development of financial markets. Inflation is one of the main factors that have a great impact on the countries’ financial development. So, the focus in the studies has mainly been on explaining the form of relationship between inflation and financial development. In this paper, the relationship between inflation and financial market development in Iran during 1978 to 2007 for the money market and during the summer of 1999 to spring of 2008 for the capital market has been reviewed. Econometric model of this research has been specified according to Boyd, Levine and Smith model (2001). Firstly, a simple linear model is used for controlling other economic factors that may be correlated with financial market performance. Then, a threshold regression is handled for explaining the nonlinear relationship between inflation and financial market development. In this model, different thresholds that limit inflation are considered. Conditional least squares method (CLS), is applied for estimating the model. The threshold limit for inflation has been determined based on the minimum error sum of squared criterion. The results of the estimated model indicate that a negative relationship between inflation and financial development indexes of money market. This positive relationship also exists between inflation and stock market development indexes. In the same way, the output of the estimated models has shown that in the some domain of inflation, the negative relationship between inflation and financial development indexes of money market is not significant. In addition, the results of the estimated models revealed that there is no a threshold limit for the impact of inflation on the stock market.
Kiomars Sohaili, Shahram Fattahi, Mehrdad Jaihoonipour,
Volume 14, Issue 1 (3-2014)
Volume 14, Issue 1 (3-2014)
Abstract
The prevalence of electronic money has affected the volume of banknotes and coins in circulation in Iran. This paper aims to study and analyses the mechanism of e-money impacts on currency volume. In this regard, the effects of e-money issuance and development indicators, such as number of debit cards, number of ATM machines, number of Point of Sales (POS) terminals, number of terminals in bank branches, on the volume of banknotes and coins in circulation are estimated using quarterly data during 2004-2010. The estimation results show that the increase in the number of debit cards raises the volume of currency in circulation. This arises since the debit cards are often used to get money for daily and weekly purchases from ATM machines in Iran. In addition, the number of Point of Sales has a negative effect on the volume of currency in circulation.
Akbar Komijani, Hamid Reza Tabatabaee Zavareh,
Volume 15, Issue 1 (4-2015)
Volume 15, Issue 1 (4-2015)
Abstract
Regarding the differences among firms on financial position and access to various financial resources, the selection of a proper variable, which represents actual cost of capital of a firm, is of great importance in explaining the firms demand for money. In order to improve the estimation of interest rate elasticity of demand for money by manufacturing firms, this paper computes the cost of capital for each firm. Using firm level panel data for 161 manufacturing companies listed in Tehran Stock Exchange, the demand for money is estimated over the period 2000 to 2010. It is found that (a) the firms in which the cost of capital is higher, have low real balances; (b) the average cost of capital and its variations implies that the weight of cost of capital should be reexamined by monetary authority; and (c) the sensitivity of demand for money to fluctuations in wage is more than to interest rate.
Seyyed Safdar Hosseini, Maryam Shokoohi,
Volume 15, Issue 1 (4-2015)
Volume 15, Issue 1 (4-2015)
Abstract
Inflation is the main problem which should be overcome both by the government and economic agents. The existence of inflation in an economy causes distortion and disequilibrium in the macroeconomic variables in the forms of decreasing growth rate, rising unemployment rate and uneven income distribution and so on. In addition, the uncertainties caused by the high inflation rates, raise the inflation expectations. This paper tries to found out which type of inflation expectations gives the better explanation of current inflation: backward-looking, forward-looking or some combination of the two? Using Generalized Method of Moments (GMM) and annual data over the period 1976-2008, the results of hybrid Philips model show that inflation in Iran is significantly determined by backward-looking inflation expectations, forward-looking inflation expectations, the output gap, exchange rate, and liquidity growth. However, backward-looking inflation expectations are more important than forward-looking expectations. The findings imply that managing inflation expectations, liquidity growth, and exchange rate can complement each other to achieve overall price stability.
Esmaeil Pishbahar, Zahra Rasoli Beirami,
Volume 15, Issue 3 (11-2015)
Volume 15, Issue 3 (11-2015)
Abstract
Fisher-Seater's approach is applied to the Iran's economic data 2008 to test the long-Run neutrality and super neutrality of money during 1988-2008. Our results support the neutrality of M2 w real GDP and real agricultural output. For nominal agricultural output neutrality of M2 is strongly rejected. The result of neutrality for the nominal GDP varies depending on the unit root test. The results also showed that the super neutrality of M2 with respect to real GDP is confirmed.
Volume 20, Issue 2 (6-2016)
Abstract
Compulsive buying is named the dark side of consumer behavior because it brings about long-term consequences such as debt, depression and family debates. Studies have shown that the compulsive buying is influenced by money attitude. The purpose of this study is to investigate the effect of money attitude on compulsive buying of youth. The required data was collected through questionnaires. The unlimited statistical population of this study included the young customers at modern Yazd malls, and the sample was determined 113 using Cochran’s formula. The collected data was analyzed using the structural equation modeling (SEM) approach based on Partial Least Squares (PLS) using PLS and SPSS softwares. This study is applicable and is regarded as a correlation study. The results indicated that money attitude, dimensions of power-prestige and anxiety has significant and positive effect on the compulsive buying, dimensions of retention-time and distrust has significant and negative effect on the compulsive buying.
Mr. Alireza Kamalian, Dr Zahra Zamani, Mr. Mohammad Amirali, Mr. Mostafa Mobini Dehkordi,
Volume 20, Issue 3 (9-2020)
Volume 20, Issue 3 (9-2020)
Abstract
In recent decades, the inflation phenomenon has been one of the most important issues for Iranian economy. Regardless of its effects on economy, identifying the determinants of inflation has always been a challenge in all economies. Therefore, in order to compare the endogenous money theory with the quantity theory of money, this study analyzes the relationship between inflation and its determinants. To this end, the spectral analysis approach at high and low frequencies is applied during the period 1991: Q1 to 2018: Q1. The results show that there is the causality relationship from the growth of liquidity towards inflation as well as from inflation to liquidity in the short- term and long-term. In addition, there is the causality relationship from the monetary base growth to inflation in the long-term, while this causal relationship runs from monetary base growth towards inflation in the short-term. Moreover, the causality relationship from money multiplier growth to inflation is confirmed in the long-term. Consequently, the causes of inflation are different in the short- and long-term.
Mr. Mohammad Sabbaghchi Firouzabad, Zohre Tabatabaienasab, Dr Abbas Alavi Rad,
Volume 22, Issue 1 (3-2022)
Volume 22, Issue 1 (3-2022)
Abstract
The role of money in the design and implementation of monetary policies for price stability, especially since 2007-2009 global financial crisis, has been reintroduced as a major policy issue in both developed and developing countries. In this regard, the money demand function is one of the most important components of any monetary system, which plays a decisive role in the mechanism of transfer of monetary policy to the real sector of the economy. Therefore, in order to analyze monetary issues and to provide appropriate solutions for overcoming economic problems, it is necessary for the policymaker to have a correct understanding of the money demand function. This paper answers the question of whether sudden changes in money supply cause instability in money demand function. Hence, the present study, with Markov switching approach and using simple sum and Divisia, estimates the demand for money function in the Iranian economy during 1988q2 -2020q2 and evaluates its stability. The results indicate that demand for money function is stable in regime one but being in regime two and three, namely the average growth of money and the sharp growth of money, has led to instability in the demand for money function, and the diversion of the monetary policy objectives.
Dr Sima Eskandari Sabzi,
Volume 22, Issue 3 (9-2022)
Volume 22, Issue 3 (9-2022)
Abstract
High and unpredictable inflation rates reduce the demand for domestic money and increase the demand for alternative assets such as foreign currency. Currency substitution is a situation in which foreign currency is replaced for domestic money in doing monetary functions. The purpose of this article is to investigate the factors affecting currency substitution in Iran, with emphasis on inflation uncertainty. For this purpose, based on the data of 1978-2018, the degree of currency substitution is obtained using the Kamin-Ericsson (2003) method and the EGARCH model is used to calculate inflation uncertainty. The estimation of an autoregressive distributed lag model show that in the short- and long-run, rising inflation leads to increased currency substitution. Inflation uncertainty in the short run increases currency substitution after three lags. In the long run, inflation uncertainty has a positive relationship and economic growth has a significant inverse relationship with currency substitution. Given the impact of inflation and its uncertainty on currency substitution, inflation control policies should be considered by policymakers.
The Key to Solve the Corruption problem: Gender, Government, Religionsand Their Impact on Each Other
Mrs. Naime Hamidi, Dr Karim Azarbayejani, Dr Morteza Sameti,
Volume 23, Issue 2 (5-2023)
Volume 23, Issue 2 (5-2023)
Abstract
Aim and Introduction
In recent years, economists have come to recognize that corruption is not just a deviation or a hurt; it is a systemic feature of many economies, which constitutes a significant impediment to economic growth and development. The present article tries to answer this question: does corruption more depended on gender or institutional factors? Today with the spread of corruption, its negative effects have overshadowed many economic, social and political aspects and have led to reduced efficiency. The international community considers corruption as an economic and social complication and many thinkers in economic, social, political and psychological sciences are studying its causes and consequences. Studies have expanded to such an extent that in the study of (Dollar et al., 2001), women are considered as myth of transparency for reasons such as lower risk averse than men and less meet with corrupt activities because they enter the labor market later than men. In this regard, (Karimi et al., 2018), also concluded that with the increase of women participation in the public sector, corruption will decrease. Therefore, less gender inequality in the economy and politics leads to the less corruption. But according to a Europol report in 2019, " Crime has no gender." Therefore, this study investigates the issue in a different atmosphere from gender behavior and examines the issue in the framework of institutions. The present article investigates the gender behaviors of human in framework of government performance and religions. Corruption as a social complication has many negative economic effects such as reduced investment, economic growth, etc. (Tanzi, 1998). Therefore, it is rejected by all religions because of religion can influence human behavior and actions. Finally, a substantial body of recent research looks at differences in the behavior of men and women in diverse economic transactions. We contribute to this literature by investigating gender differences. So, this article tries to study the gender behaviors of human. This study shows that Islam and Christianity have no significant effect on relation between corruption and gender inequality index. But all the results showed that government performance does influence this relation. Also, the robustness test strongly confirmed the results of the study.
Methodology
The data are drawn from a wide range of sources. There are two major measures of corruption: Corruption Perceptions Index (CPI), that is the inverse of transparency, Anti-Money Laundering/Counter-Financing of Terrorism (AML). The CPI was obtained from Transparency International (TI), and it ranges from 0 to 10 where low values indicate high transparency and low corruption. Gender Inequality Index (GII) was used as gender index. Our data set contains 89 countries over 10 years (from 2008 to 2017). This study used the dynamic panel data approach, system generalized method of moments (GMM-SYSTEM) and Panel vector autoregressive model (PVAR) to examine the relationship between corruption and gender inequality, where the government performance and religions (Islam and Christianity) can link between corruption and gender inequality. In order to investigate the effect of countries (cross-sections), two groups of Muslim and Christian countries have been used. However, in order to investigate government performance effect on relation between corruption and gender inequality and examine robustness test the results of the study used two groups of instrument variables. The first group is the worldwide governance indicators (WGI) and second group is Fraser institute indicators.
Findings
In order to answer the question, does corruption more depend on gender or institutional factors? Despite the behavioral specifications of women, the rate of corruption in women is lower than men (Dollar et al., 2001). We find by System Generalized Method of Moments strong evidence about this prediction. Results show that women’s participation decreases corruption and that corruption decreases women’s participation in government; and both effects are substantively significant. However, the estimation results of the systems studied in the present article confirm that the relationship between corruption index and gender inequality is significantly affected by the way the government works. While religions have no effect on how the index of corruption and gender inequality affect each other. Therefore, it can be said that government performance is a missing loop in relationship between corruption and gender and its effects are statistically significant.
Discussion and Conclusion
Corruption is a historical, important and effective phenomenon. There is extensive researches about the factors of corruption. The social science literature indicates that women may be more honest or more risk averse and may have higher standards of ethical behavior and may be more concerned with the common good in comparison with men. This would imply that women are more willing to sacrifice private profit for the public good and this would be especially important for political and public life. Does greater participation of women in the public sector cause decreased corruption, or does greater corruption in government cause lower participation of women in government? In this study, our overall impression is that the evidence supports both propositions. So, the major aim in article is to explain the gender behavior of human to do corrupt activity in the formwork of government and religions using the dynamic panel data approach. Thus, this study used statistical data from 89 countries during 2008-2017, two corruption indicators, two groups of instrument variables and two groups of countries. The selection of countries was based on access to statistical data. The estimations show that religion has no significant effect on corruption and gender inequality index, i.e. Islam and Christianity have no significant effect on relation between corruption and gender inequality index. This study also investigated the impact of government performance on relation between two indices. In all systems, Sargan test has been confirmed. In summary, the results of estimated systems indicate that government institution is a missing loop in relationship between corruption and gender and its effects are statistically significant.
Keywords: Corruption, Money Laundering, Gender, religion, Government
JEL Classification: H11, H12, J08, J16, J18, O11
In recent years, economists have come to recognize that corruption is not just a deviation or a hurt; it is a systemic feature of many economies, which constitutes a significant impediment to economic growth and development. The present article tries to answer this question: does corruption more depended on gender or institutional factors? Today with the spread of corruption, its negative effects have overshadowed many economic, social and political aspects and have led to reduced efficiency. The international community considers corruption as an economic and social complication and many thinkers in economic, social, political and psychological sciences are studying its causes and consequences. Studies have expanded to such an extent that in the study of (Dollar et al., 2001), women are considered as myth of transparency for reasons such as lower risk averse than men and less meet with corrupt activities because they enter the labor market later than men. In this regard, (Karimi et al., 2018), also concluded that with the increase of women participation in the public sector, corruption will decrease. Therefore, less gender inequality in the economy and politics leads to the less corruption. But according to a Europol report in 2019, " Crime has no gender." Therefore, this study investigates the issue in a different atmosphere from gender behavior and examines the issue in the framework of institutions. The present article investigates the gender behaviors of human in framework of government performance and religions. Corruption as a social complication has many negative economic effects such as reduced investment, economic growth, etc. (Tanzi, 1998). Therefore, it is rejected by all religions because of religion can influence human behavior and actions. Finally, a substantial body of recent research looks at differences in the behavior of men and women in diverse economic transactions. We contribute to this literature by investigating gender differences. So, this article tries to study the gender behaviors of human. This study shows that Islam and Christianity have no significant effect on relation between corruption and gender inequality index. But all the results showed that government performance does influence this relation. Also, the robustness test strongly confirmed the results of the study.
Methodology
The data are drawn from a wide range of sources. There are two major measures of corruption: Corruption Perceptions Index (CPI), that is the inverse of transparency, Anti-Money Laundering/Counter-Financing of Terrorism (AML). The CPI was obtained from Transparency International (TI), and it ranges from 0 to 10 where low values indicate high transparency and low corruption. Gender Inequality Index (GII) was used as gender index. Our data set contains 89 countries over 10 years (from 2008 to 2017). This study used the dynamic panel data approach, system generalized method of moments (GMM-SYSTEM) and Panel vector autoregressive model (PVAR) to examine the relationship between corruption and gender inequality, where the government performance and religions (Islam and Christianity) can link between corruption and gender inequality. In order to investigate the effect of countries (cross-sections), two groups of Muslim and Christian countries have been used. However, in order to investigate government performance effect on relation between corruption and gender inequality and examine robustness test the results of the study used two groups of instrument variables. The first group is the worldwide governance indicators (WGI) and second group is Fraser institute indicators.
Findings
In order to answer the question, does corruption more depend on gender or institutional factors? Despite the behavioral specifications of women, the rate of corruption in women is lower than men (Dollar et al., 2001). We find by System Generalized Method of Moments strong evidence about this prediction. Results show that women’s participation decreases corruption and that corruption decreases women’s participation in government; and both effects are substantively significant. However, the estimation results of the systems studied in the present article confirm that the relationship between corruption index and gender inequality is significantly affected by the way the government works. While religions have no effect on how the index of corruption and gender inequality affect each other. Therefore, it can be said that government performance is a missing loop in relationship between corruption and gender and its effects are statistically significant.
Discussion and Conclusion
Corruption is a historical, important and effective phenomenon. There is extensive researches about the factors of corruption. The social science literature indicates that women may be more honest or more risk averse and may have higher standards of ethical behavior and may be more concerned with the common good in comparison with men. This would imply that women are more willing to sacrifice private profit for the public good and this would be especially important for political and public life. Does greater participation of women in the public sector cause decreased corruption, or does greater corruption in government cause lower participation of women in government? In this study, our overall impression is that the evidence supports both propositions. So, the major aim in article is to explain the gender behavior of human to do corrupt activity in the formwork of government and religions using the dynamic panel data approach. Thus, this study used statistical data from 89 countries during 2008-2017, two corruption indicators, two groups of instrument variables and two groups of countries. The selection of countries was based on access to statistical data. The estimations show that religion has no significant effect on corruption and gender inequality index, i.e. Islam and Christianity have no significant effect on relation between corruption and gender inequality index. This study also investigated the impact of government performance on relation between two indices. In all systems, Sargan test has been confirmed. In summary, the results of estimated systems indicate that government institution is a missing loop in relationship between corruption and gender and its effects are statistically significant.
Keywords: Corruption, Money Laundering, Gender, religion, Government
JEL Classification: H11, H12, J08, J16, J18, O11
Mrs. Shokooh Mahmoodi, Dr Seyed Abdulmajid Jalaee, Dr Zeinolabedin Sadeghi, Dr Alireza Shakibaei,
Volume 23, Issue 3 (8-2023)
Volume 23, Issue 3 (8-2023)
Abstract
Aim and Introduction
The growth of the digital currency market in the past years has attracted a lot of attention, and due to advantages such as transparency and new capabilities of the block chain, it is expected to continue its continuous growth in the future. The popularity of digital currencies such as Bitcoin and block chain-based currencies has created challenges and opportunities for the energy sector. Considering that electricity in most parts of the world are often produced using fossil fuels and non-renewable energies, the harmful environmental effects of digital currency mining are significant. Therefore, dealing with digital currency mining and considering related environmental costs can reveal the hidden costs of mining and provide a comprehensive and complete analysis in the field of digital currency. In this research, an attempt has been made to investigate and predict the trend of Bitcoin mining and related carbon dioxide emissions and environmental effects by using the method of system dynamics and design of the Bitcoin mining system from the time of the issuance of Bitcoin until 2034.
The results showed that Bitcoin mining will lead to the emergence and release of pollution in the world and its highest level during the peak of hash (300 billion GH) will be about 400 million kilograms of CO2 per day and until the next halving, Bitcoin mining will be profitable and after that the amount of extraction and consequently the level of its pollution will decrease.
Methodology
System dynamics is a method for modeling systems using accumulation, state and flow variables, which was introduced and developed in the 1960s by Forster (1961).
This method became very famous in the 1970s due to the publication of the book "Limits to Growth". This book used the system dynamics model to analyze the absurdity of the idea of unlimited growth, and today the most comprehensive source for the system dynamics model is the book "Business Dynamics" by Sterman (2000).
System dynamics can model the technical and social aspects of complex systems created by the adoption of Bitcoin and other cryptocurrencies. Therefore, due to its ability to explain emergent systemic phenomena in terms of interactions between agents related to human behavior and the (technical) framework of the system, it is a complete method to study the economic dynamics of this new form of money.
By using the system dynamics modeling technique (Forster, 1961; Sterman, 2000), the evolution of the network hash rate can be explained to a large extent. Assuming the existence of an efficient market, it can be analyzed that the miners will continue to mine Bitcoin to a certain extent that their expected profit from mining (which is netted from the cost of mining electricity) is realized. In other words, miners behave rationally, which is a basic concept for analyzing and predicting the future behavior of the hash rate of the network.
Results and Discussion
In this study, it was shown that the Bitcoin mining process can be modeled as a dynamic system using the dynamic systems method. Modeling begins with the hypothesis of efficient markets in Bitcoin mining. In the designed model it was shown how the Bitcoin mining system can be explained with a negative feedback loop that reduces the mining profit to zero with a time delay. By simulating this model for the next three halving periods, approximately in February 2024, digital currency mining will reach the point of maximum pollution production, and in other words, until the next halving, Bitcoin mining will be profitable, and after that, the amount of mining and, consequently, its pollution level will decrease. This model shows that the methods and tools of system dynamics can be effective for modeling Bitcoin and can be proposed for other existing or new cryptocurrencies as well as to explain the behavior of complex social systems created by the application of block chain technology.
Conclusion
The results showed that Bitcoin mining will lead to the emergence and release of pollution in the world, and its highest level will be around 400 million kilograms of CO2 per day during the peak of hash (300 billion Gigahash). Bitcoin mining, like any other profitable activity, when its profitability increases, it will be more welcome for exploitation and earning, therefore, according to its function and benefits, its pollution is predictable and unavoidable, but the main issue for decision makers and policy makers in this field is to compare the amount of hidden and obvious costs of digital currency mining with its benefits, and another point is to compare these costs to other similar activities.
The growth of the digital currency market in the past years has attracted a lot of attention, and due to advantages such as transparency and new capabilities of the block chain, it is expected to continue its continuous growth in the future. The popularity of digital currencies such as Bitcoin and block chain-based currencies has created challenges and opportunities for the energy sector. Considering that electricity in most parts of the world are often produced using fossil fuels and non-renewable energies, the harmful environmental effects of digital currency mining are significant. Therefore, dealing with digital currency mining and considering related environmental costs can reveal the hidden costs of mining and provide a comprehensive and complete analysis in the field of digital currency. In this research, an attempt has been made to investigate and predict the trend of Bitcoin mining and related carbon dioxide emissions and environmental effects by using the method of system dynamics and design of the Bitcoin mining system from the time of the issuance of Bitcoin until 2034.
The results showed that Bitcoin mining will lead to the emergence and release of pollution in the world and its highest level during the peak of hash (300 billion GH) will be about 400 million kilograms of CO2 per day and until the next halving, Bitcoin mining will be profitable and after that the amount of extraction and consequently the level of its pollution will decrease.
Methodology
System dynamics is a method for modeling systems using accumulation, state and flow variables, which was introduced and developed in the 1960s by Forster (1961).
This method became very famous in the 1970s due to the publication of the book "Limits to Growth". This book used the system dynamics model to analyze the absurdity of the idea of unlimited growth, and today the most comprehensive source for the system dynamics model is the book "Business Dynamics" by Sterman (2000).
System dynamics can model the technical and social aspects of complex systems created by the adoption of Bitcoin and other cryptocurrencies. Therefore, due to its ability to explain emergent systemic phenomena in terms of interactions between agents related to human behavior and the (technical) framework of the system, it is a complete method to study the economic dynamics of this new form of money.
By using the system dynamics modeling technique (Forster, 1961; Sterman, 2000), the evolution of the network hash rate can be explained to a large extent. Assuming the existence of an efficient market, it can be analyzed that the miners will continue to mine Bitcoin to a certain extent that their expected profit from mining (which is netted from the cost of mining electricity) is realized. In other words, miners behave rationally, which is a basic concept for analyzing and predicting the future behavior of the hash rate of the network.
Results and Discussion
In this study, it was shown that the Bitcoin mining process can be modeled as a dynamic system using the dynamic systems method. Modeling begins with the hypothesis of efficient markets in Bitcoin mining. In the designed model it was shown how the Bitcoin mining system can be explained with a negative feedback loop that reduces the mining profit to zero with a time delay. By simulating this model for the next three halving periods, approximately in February 2024, digital currency mining will reach the point of maximum pollution production, and in other words, until the next halving, Bitcoin mining will be profitable, and after that, the amount of mining and, consequently, its pollution level will decrease. This model shows that the methods and tools of system dynamics can be effective for modeling Bitcoin and can be proposed for other existing or new cryptocurrencies as well as to explain the behavior of complex social systems created by the application of block chain technology.
Conclusion
The results showed that Bitcoin mining will lead to the emergence and release of pollution in the world, and its highest level will be around 400 million kilograms of CO2 per day during the peak of hash (300 billion Gigahash). Bitcoin mining, like any other profitable activity, when its profitability increases, it will be more welcome for exploitation and earning, therefore, according to its function and benefits, its pollution is predictable and unavoidable, but the main issue for decision makers and policy makers in this field is to compare the amount of hidden and obvious costs of digital currency mining with its benefits, and another point is to compare these costs to other similar activities.
Mr. Abbas Motaharinezhad, Dr. Zahra Nasrollahi,
Volume 23, Issue 4 (12-2023)
Volume 23, Issue 4 (12-2023)
Abstract
One tool to achieve macroeconomic goals is to control the volume of liquidity. There are two views on the control of liquidity volume. The first view argues that good governance and commitment to the laws for money creation hinder increasing and uncontrollable volume of money. This view emphasizes the important role of institutions in controlling or growing liquidity. So, one of the reasons for the growth of liquidity is rooted in the laws and the extent of the rule of law of the countries. The second view suggests how the creation of money affects the rule of law and its influence channels. Long-term mismanagement of money has sudden and unpredictable effects and leads to institutional and sometimes fundamental change. The purpose of this article is to explain the non-linear relationship between money creation and the rule of law. For this purpose, the panel model with a threshold approach (PSTR) has been used, based on the data of the countries having oil reserves during 2002-2020. Based on the results, the variables of money creation and rule of law have negative relationships with each other, and the results confirm the acceptance of both views. In other words, the creation of money and its consequences changes and weaken the rule of law through various channels. Also, the weakness of laws in oil countries leads to the growth of money creation. Therefore, one of the causes of the weakness of the rule of law in these areas should be sought in the creation of money and its consequences. Moreover, the growth of liquidity is affected by the weakness of the rule of law in the growth or control of the amount of liquidity.
Introduction:
In the early models of economic growth, the role of saving and investment was emphasized. In the next models, factors such as the growth of knowledge and technology, human skill and business growth were taken into consideration. In the last few decades, the role of non-economic factors such as democracy (Sen, 1999) and institutions (North, 1990; Acemoglu, 2004) on economic growth has been emphasized. Acemoglu et al. (2005) argue that the distribution of resources and the distribution of power have dominant effects on the growth path of countries precisely through their effect on economic institutions such as property rights (Hartwell, 2018). From this point of view, it is political institutions that affect economic variables.
On the other hand, extreme behavior by economic institutions, whether during or in the acceleration of a crisis, may in turn disrupt or determine political institutions and their subsequent paths and quickly change the status quo in a destabilizing manner. Periods of crisis and periods of severe inflation have the ability to impose changes in the distribution of power throughout society, and as a result, change political institutions. Even more "normal" economic disturbances may change bargaining strategies and political coalitions, and transform a country's political institutions (Hartwell, 2018). From this point of view, the economic institution of money will have an effect on political institutions (Money affects political institutions)
Based on this, the present study, while examining the relationship between money creation and the rule of law, and how these two affects each other, seeks to examine two perspectives. The first perspective believes that the rule of law prevents the expansion of the money supply. Therefore, the reason for the growth of liquidity should be investigated in the laws and the extent of rule of law. In other words, the weakness of the rule of law causes the growth of liquidity. Another perspective emphasizes the issue of money creation and its benefits and examines how money creation affects the rule of law and its influence channels. If we look at money as a receipt for production, it means that the people of a nation determine GDP by producing and creating wealth and receive a receipt in the form of money in return for their share in it. Next to this group, there is another group (governments and bankers) who have the power to create money (or those who are given money created by the choice of the government and banks) and when dividing GDP, next to the first group own part of the production. This is the effect of money creation on property rights and consequently on the rule of law.
Methodology:
In this research, the bilateral and non-linear relationship between money creation and the rule of law is investigated among selected oil-abundant countries during 2002-2020 by using the Panel Smooth Transition Regression Models (PSTR).
To investigate the mutual effects of rule of law and money creation, two models were considered. In the first model, the rule of law index was considered as a dependent variable, and in the second model, broad money growth (annual %) was considered as a dependent variable. Control variables according to previous studies include oil rents (% of GDP), economic growth (GDP growth), trade openness, urban population growth, quality of regulations and abundance of natural resources.
Results and Discussion:
The linear part confirms the negative and one-way causality relationship from money creation to the rule of law. The estimation results of the non-linear part of the model confirm the existence of a negative relationship between money creation and the rule of law, and confirm the bilateral causality relationship between the two. In other words, the results show that the creation of money is a factor to weaken the rule of law and the weakness of the rule of law has also caused the growth of liquidity.
Conclusion:
The results confirm the existence of a negative relationship between money creation and the rule of law, as well as the bilateral causality between these two variables. In other words, the results show that the creation of money and its benefits change and affect the rule of law through various channels. Also, the weakness of rule of law in oil countries leads to the growth of money creation. Based on the results, it is suggested that the oil governments provide space for investment and free trade by shrinking their bodies, and with commercial freedom and the development of financial markets, and by directing foreign exchange income and stray liquidity to the real sector of the economy in a targeted manner. It is also suggested that the oil countries manage their liquidity by reforming the monetary system and the banking sector, and defend private property and the rule of law by preventing the transfer of ownership that occurs through money creation and inflation. This can provide more opportunities for the private sector. The prosperity of the private sector and the increase of competition in different economic sectors and the use of economic freedom policies lead to more dynamism of the economy.
Introduction:
In the early models of economic growth, the role of saving and investment was emphasized. In the next models, factors such as the growth of knowledge and technology, human skill and business growth were taken into consideration. In the last few decades, the role of non-economic factors such as democracy (Sen, 1999) and institutions (North, 1990; Acemoglu, 2004) on economic growth has been emphasized. Acemoglu et al. (2005) argue that the distribution of resources and the distribution of power have dominant effects on the growth path of countries precisely through their effect on economic institutions such as property rights (Hartwell, 2018). From this point of view, it is political institutions that affect economic variables.
On the other hand, extreme behavior by economic institutions, whether during or in the acceleration of a crisis, may in turn disrupt or determine political institutions and their subsequent paths and quickly change the status quo in a destabilizing manner. Periods of crisis and periods of severe inflation have the ability to impose changes in the distribution of power throughout society, and as a result, change political institutions. Even more "normal" economic disturbances may change bargaining strategies and political coalitions, and transform a country's political institutions (Hartwell, 2018). From this point of view, the economic institution of money will have an effect on political institutions (Money affects political institutions)
Based on this, the present study, while examining the relationship between money creation and the rule of law, and how these two affects each other, seeks to examine two perspectives. The first perspective believes that the rule of law prevents the expansion of the money supply. Therefore, the reason for the growth of liquidity should be investigated in the laws and the extent of rule of law. In other words, the weakness of the rule of law causes the growth of liquidity. Another perspective emphasizes the issue of money creation and its benefits and examines how money creation affects the rule of law and its influence channels. If we look at money as a receipt for production, it means that the people of a nation determine GDP by producing and creating wealth and receive a receipt in the form of money in return for their share in it. Next to this group, there is another group (governments and bankers) who have the power to create money (or those who are given money created by the choice of the government and banks) and when dividing GDP, next to the first group own part of the production. This is the effect of money creation on property rights and consequently on the rule of law.
Methodology:
In this research, the bilateral and non-linear relationship between money creation and the rule of law is investigated among selected oil-abundant countries during 2002-2020 by using the Panel Smooth Transition Regression Models (PSTR).
To investigate the mutual effects of rule of law and money creation, two models were considered. In the first model, the rule of law index was considered as a dependent variable, and in the second model, broad money growth (annual %) was considered as a dependent variable. Control variables according to previous studies include oil rents (% of GDP), economic growth (GDP growth), trade openness, urban population growth, quality of regulations and abundance of natural resources.
Results and Discussion:
The linear part confirms the negative and one-way causality relationship from money creation to the rule of law. The estimation results of the non-linear part of the model confirm the existence of a negative relationship between money creation and the rule of law, and confirm the bilateral causality relationship between the two. In other words, the results show that the creation of money is a factor to weaken the rule of law and the weakness of the rule of law has also caused the growth of liquidity.
Conclusion:
The results confirm the existence of a negative relationship between money creation and the rule of law, as well as the bilateral causality between these two variables. In other words, the results show that the creation of money and its benefits change and affect the rule of law through various channels. Also, the weakness of rule of law in oil countries leads to the growth of money creation. Based on the results, it is suggested that the oil governments provide space for investment and free trade by shrinking their bodies, and with commercial freedom and the development of financial markets, and by directing foreign exchange income and stray liquidity to the real sector of the economy in a targeted manner. It is also suggested that the oil countries manage their liquidity by reforming the monetary system and the banking sector, and defend private property and the rule of law by preventing the transfer of ownership that occurs through money creation and inflation. This can provide more opportunities for the private sector. The prosperity of the private sector and the increase of competition in different economic sectors and the use of economic freedom policies lead to more dynamism of the economy.
Volume 24, Issue 1 (6-2020)
Abstract
Virtual currencies are a new phenomenon that is extracted and transmitted over the Internet using new technologies. Decentralization, transboundary, anonymity of users, encryption and irreversibility of transactions are features that make the use of virtual currencies in criminal activity more attractive to criminals.
The uncertainty over the legal status of the central bank and its role in enforcing monetary and banking regulations will pose challenges to criminal proceedings related to virtual currencies; In the first place, the identification of virtual currencies that lack legal and central backing in the Iranian legal system as domestic and foreign currency and, secondly, the validity of the title of the foreign exchange for such transactions can be a source of ambiguity for the judicial system. To be considered. This paper uses descriptive-analytical methodology.
Precise legal definition of virtual currencies and determination of their legal nature, modification of laws related to virtual currencies and adoption of new laws taking into account the unique features of virtual currencies in cases where the law does not exist, recognizing criminal offences related to virtual currencies where it is not possible to comply with current laws, cooperating with foreign countries and international institutions in the exchange of information and communications related to virtual currencies, Agreement between the private and public sector on the use and application of virtual currency experts and the training of prosecutors and law enforcement officers are among the suggested solutions to address the challenges of dealing with virtual currency crimes.
Dr Hossein Samsami Mazreeh Akhoond, Mr Ahmad Bakhtiyari,
Volume 24, Issue 2 (5-2024)
Volume 24, Issue 2 (5-2024)
Abstract
Introduction
The volume of the external money supply is determined by the policymaker, but the amount of money and liquidity will be influenced by the individual's decision to combine their portfolios and the behavior of banks (through lending channels and balance sheets) in the internal money supply. From this perspective, the initial change in external currency (monetary base) causes changes in the supply and demand of all types of assets (such as external and internal money) and their rate of return, and the behavior of individuals and banks determines the optimal composition of the portfolio of assets of individuals and banks and the new and balanced composition of liquidity volume. . Due to differences in the structure of the economy in different countries, the external currency itself can be created from different origins, the exogenous increase of each component of the central bank's asset column (monetary base) causes a change in the relative supply of that asset and its rate of return. Liquidity changes have different sources and are due to changes in the supply of different assets that make up different components of liquidity resources and since the components of liquidity resources are not of the same kind and originate from different processes can have different effects on the performance of macroeconomic variables. The purpose of this article is to analyze and investigate the mechanism of the effect of the components of liquidity resources on the macroeconomic variables of Iran. Changes in liquidity have different sources and are caused by changes in the supply of different assets that form different components of liquidity
sources and can have different effects on the performance of macroeconomic variables. For this purpose, a macroeconomic model by including the components of liquidity resources including net foreign assets of the central bank, net foreign assets of banks and non-bank credit institutions, net debt of the public sector to the central bank, net debt of the public sector to banks and non-bank credit institutions and Non-governmental sector debt is designed to show the relationships of economic variables in the framework of a dynamic stochastic general equilibrium model provides.
Methodology
The model presented in this research is a small open economy consisting of six sectors of households, firms, foreign sectors, banks and credit institutions, government and central bank within the framework of dynamic stochastic general equilibrium model of new Keynesians with respect to nominal and real frictions. By optimizing the objective functions of each of the above brokers, the result of the obtained economic relations is a system of nonlinear differential equations under rational expectations that are currently not empirically solvable, especially in larger patterns. But we can use approximation technique to calculate the model solution in the approximate range functionally. In this research, the set of equations is linear logarithmic using the Ahlik method (1999). In the next step, the input values of the pattern and calibration of parameters and variables have been done using the Iranian economy data during the period 2000-2020. Then, using the Dynar software, the system of equations based on the Bunchard-Kahn method is solved. The results of the statistical tests and moments indicate that the proposed model is suitable for simulating Iran's economy.
Results and Discussion
In order to evaluate the different effects of liquidity resources on economic variables, the reaction of these variables to liquidity component shocks based on instantaneous reaction functions has been investigated. The findings of the research show that the net assets of the banking system through balance of payments and net debt to the banking system through the channel of the state financial balance, if the source of liquidity is created, increases the variables of production, consumption and investment and causes mild growth or decrease of inflation and exchange rate variables. However, if the source of the liquidity creation of non-governmental debts is from the channel of facilitation, it has a decreasing effect on the variables of production, consumption and investment, and only increases inflation and exchange rate. The two sources of the net assets of the banking system and the net of government liabilities to the banking system, contrary to the source of non-governmental sector debt due to the creation of added value in the economy, have more productive effects and investment and less inflationary effects, hence, macroeconomic stability will bring.
Conclusion
The reaction of macroeconomic variables for the same liquidity growth based on instantaneous reaction functions shows that different components of liquidity sources have different effects on macroeconomic variables. These results carry the policy message that, in addition to liquidity management, attention to the developments in liquidity resources components is also important in the field of monetary policy. Considering that liquidity has increased by about 5% in all five components of liquidity components, the effects and implications of the five components of liquidity creation sources can be examined. Comparative results indicate that for the specific growth of liquidity, the increases caused by the net assets of the banking system and the net of public sector liabilities to the banking system have more productive and investment effects and less inflationary effects, hence macroeconomic stability. Therefore, it is recommended that the monetary transition policy as much as possible prevent the increase in non-governmental sector debt which leads to increased liquidity.
The volume of the external money supply is determined by the policymaker, but the amount of money and liquidity will be influenced by the individual's decision to combine their portfolios and the behavior of banks (through lending channels and balance sheets) in the internal money supply. From this perspective, the initial change in external currency (monetary base) causes changes in the supply and demand of all types of assets (such as external and internal money) and their rate of return, and the behavior of individuals and banks determines the optimal composition of the portfolio of assets of individuals and banks and the new and balanced composition of liquidity volume. . Due to differences in the structure of the economy in different countries, the external currency itself can be created from different origins, the exogenous increase of each component of the central bank's asset column (monetary base) causes a change in the relative supply of that asset and its rate of return. Liquidity changes have different sources and are due to changes in the supply of different assets that make up different components of liquidity resources and since the components of liquidity resources are not of the same kind and originate from different processes can have different effects on the performance of macroeconomic variables. The purpose of this article is to analyze and investigate the mechanism of the effect of the components of liquidity resources on the macroeconomic variables of Iran. Changes in liquidity have different sources and are caused by changes in the supply of different assets that form different components of liquidity
sources and can have different effects on the performance of macroeconomic variables. For this purpose, a macroeconomic model by including the components of liquidity resources including net foreign assets of the central bank, net foreign assets of banks and non-bank credit institutions, net debt of the public sector to the central bank, net debt of the public sector to banks and non-bank credit institutions and Non-governmental sector debt is designed to show the relationships of economic variables in the framework of a dynamic stochastic general equilibrium model provides.
Methodology
The model presented in this research is a small open economy consisting of six sectors of households, firms, foreign sectors, banks and credit institutions, government and central bank within the framework of dynamic stochastic general equilibrium model of new Keynesians with respect to nominal and real frictions. By optimizing the objective functions of each of the above brokers, the result of the obtained economic relations is a system of nonlinear differential equations under rational expectations that are currently not empirically solvable, especially in larger patterns. But we can use approximation technique to calculate the model solution in the approximate range functionally. In this research, the set of equations is linear logarithmic using the Ahlik method (1999). In the next step, the input values of the pattern and calibration of parameters and variables have been done using the Iranian economy data during the period 2000-2020. Then, using the Dynar software, the system of equations based on the Bunchard-Kahn method is solved. The results of the statistical tests and moments indicate that the proposed model is suitable for simulating Iran's economy.
Results and Discussion
In order to evaluate the different effects of liquidity resources on economic variables, the reaction of these variables to liquidity component shocks based on instantaneous reaction functions has been investigated. The findings of the research show that the net assets of the banking system through balance of payments and net debt to the banking system through the channel of the state financial balance, if the source of liquidity is created, increases the variables of production, consumption and investment and causes mild growth or decrease of inflation and exchange rate variables. However, if the source of the liquidity creation of non-governmental debts is from the channel of facilitation, it has a decreasing effect on the variables of production, consumption and investment, and only increases inflation and exchange rate. The two sources of the net assets of the banking system and the net of government liabilities to the banking system, contrary to the source of non-governmental sector debt due to the creation of added value in the economy, have more productive effects and investment and less inflationary effects, hence, macroeconomic stability will bring.
Conclusion
The reaction of macroeconomic variables for the same liquidity growth based on instantaneous reaction functions shows that different components of liquidity sources have different effects on macroeconomic variables. These results carry the policy message that, in addition to liquidity management, attention to the developments in liquidity resources components is also important in the field of monetary policy. Considering that liquidity has increased by about 5% in all five components of liquidity components, the effects and implications of the five components of liquidity creation sources can be examined. Comparative results indicate that for the specific growth of liquidity, the increases caused by the net assets of the banking system and the net of public sector liabilities to the banking system have more productive and investment effects and less inflationary effects, hence macroeconomic stability. Therefore, it is recommended that the monetary transition policy as much as possible prevent the increase in non-governmental sector debt which leads to increased liquidity.
Volume 26, Issue 3 (9-2019)
Abstract
During past years, economists have been endeavoring to determine both relationship and causality direction between real macroeconomic and nominal economic variables. In this regard, many studies have been carried out on the relation between money and inflation, resulting in the introduction of the notion of money neutrality which implies that permanent change of money supply just affects the nominal variables and has no lasting and real effect on production and employment. Furthermore, even when constant changes of money growth have no real impact whatsoever (except on real monetary equilibriums); money is stated to be super neutral in the long run. Although the majority of economists (with disparate schools of thought) concur with long-term money neutrality, there are still different opinions on the short-term and middle-term neutrality of the money. In following some major of them are presented. This paper investigates the existence of money neutrality in the Iranian economy applying Fisher and Seater approach during 1973 and 2014. The time series analysis, ARIMA model, is used to examine the problem and we consider various monetary aggregates, M1 and M2. Results show that we cannot reject the hypothesis test of money neutrality in Iran. Because all variables are non-stationary and integrated of order one I (1) we can only test the money neutrality. So it is strongly verified that money is neutral and it does not have any significant effects on real non-oil GDP in Iran. Also it was shown that the results are not sensitive to different aggregate money supply.
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