Money and Inflation in the Islamic Republic of Iran

 
Author/Editor: Bonato, Leo
 
Publication Date: May 01, 2007
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper looks at the determinants of inflation in Iran. Unlike the traditional estimates of the demand function for real money balances, the approach followed here focuses on the relationship between nominal variables and inflation. The model estimates are used to address the questions raised by the decline in inflation that occurred up to the first half of 2006, looking at the structural stability of the estimated relationships and the ability of the model to predict inflation at the end of the sample. The estimates confirm the strong relationship between money and inflation when M1 is used, with no evidence of a structural change.
 
Series: Working Paper No. 07/119
Subject(s): Inflation | Iran, Islamic Republic of | Money | Money supply | Monetary policy | Economic models

Author's Keyword(s): Money | inflation | monetary policy
 
English
Publication Date: May 01, 2007
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2007119 Pages: 17
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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