Journal of Economic Research
Year:2002 | Volume:- | Issue:60|Papers Count:8

The main Purpose of this paper is to discern the dynamic (in the Granger or temporal as well structural sense) among real and nominal variables in the context of a (developing) oil exporting economy such as Iran. The result suggests that usefulness of the IS/LM model to interpret fluctuations in Iran is Limites. The dynamic causual chain implied by this study evidence that real output and import more often predomently lead (rather than lag) jmoney supply and other nominal endogenous variables provide support to what McCallum (1989) calls "Weak" version of equilibrium in real business cycles models, an issue that deserves more research.

In the age of capitalistic production, capital plays a vital role in the economic life. Considering the concept of capital, the concept of interest stands out. The purpose of this paper is to make a crirical survey of the image of interest in the view of Muslem scholars. The problem of interest is the descriptive and theoretical analysis of the income obtained from capitaL The main question, posed in this respect, is what Muslem thinkers do contribute to the scientific exposition of the essence of this income. To realize such a contribution, we have compared the Muslem thinkers attitudes towards interest with the prevailing explanations in the capitalistic literature. The conclusion would be that The concept of interest in the view of Muslem Thinkers is no more than the contractual interest fixed in loan contracts. The contractual interest in loans is regarded as the obvious exercise of Riba; which is strongly prohibited in Islam. This attitude is so dominated that the bulk of Islamic writings has targeted money, rather than capital, as the fundamental concept related to the problem of interest. However, to solve tne problem of interest, a new paradigm would be trying to alter the conceptualization of money by an alternative theory of capital which substitutes natrual interest for contract interest. If so; it would be found out that there is no difference between interest and profit in essence. In economic world, profit can not come into existence if the ex ante natural rate of interest is omitted. Nevertheless, with resort to the concept of natural rate of interest, the economic raison d"etre of all kinds of contract interests can be explained and many controversies regarding the fundamental concept of interest, which are held between Islamic ideals and conventional practices, can be settled down.

This article explains the different kinds of unemployment and discusses the demand management policies. The paper argues that among the different kinds of unemployment the weight and importance of the structural unemployment is higher than other kinds of unemployment. The article refers to different studies concerrning the effects of employnment growth in different economic sectors on the unemployment rate, while mentioning the structural transformation of employment in different sectors. To understand which sector has a stronger effect on unemployment, two models are estimated. According to the findings, during the 1971-1990 period, the growth in industrial sector has no effect on unemployment rate while the growth in the service sector has significant effects on its reduction. Also the increase in the value added of the industrial sector has not decreased the unemployment rate, while the increase. in the service sector value added, has a significant effect on the reduction of unemplymen rate

The main objective of this paper is to study theoretically the effects and consquences of uncertainty and restriction of information with regards to the future prices in the stock market. It has been assumed that there is no dispressed information prices and the buyers are in the state of risk and uncertainty. To cover the risk and uncertainty, one should pursue information data within the framework of theory of social learining. Efforts are made in this paper to display how the prices become a function of beliefs in this condition. These beliefs take roots in the history and private signals. Also this study shows that the prices are changing with the inflow of new information and change of beliefs. Heance sellers, those who have sufficient shares in the stock market influence the prices with the change in the beliefs whose outcome is the creation of pooling prices and seprating prices.

In recent years a growing consensus has emerged for price stability as the long-run goal of monetary policy. However, the following question still remains: how should monetary policy be conducted to achieve the price stability goal? A central feature of all of monetary regimes is the use of a nominal anchor in some form, so we will examine what role a nominal anchor plays in promoting price stability, and then basic types of monetary policy regimes including inflation targeting will be disscused. In theory, an inflation target is relatively straightforward. The central bank forecasts the future path of inflation; the forecast is compared with the target inflation rate; the difference between the forecast and the target determines the required adjustment of the monetary policy instrument. However, the experience to date of inflation targeting countries has identified a number of complex operational and institutional issues. This paper examines the relevene of Inflation Targeting for the Iranian economy and identifies the two major prerequisites of this monetary policy framework: (1) the ability to carry out a substantially indepedent monetary policy with more transparency and accountability, especialy one not constrained by fiscal considerations; and (2) freedom from commitment to another nominal anchor like the exchange rate. The basic theme that comes out of this analysis is that the success of this monetary regime in the Iranian economy needs to a transition stage for preparation of nessecary conditions.

In the age of capitalistic production, capital plays a vital role in the economic life. Considering the concept of capital, the concept of interest stands out. The purpose of this paper is to make a crirical survey of the image of interest in the view of Muslem scholars. The problem of interest is the descriptive and theoretical analysis of the income obtained from capitaL The main question, posed in this respect, is what Muslem thinkers do contribute to the scientific exposition of the essence of this income. To realize such a contribution, we have compared the Muslem thinkers attitudes towards interest with the prevailing explanations in the capitalistic literature. The conclusion would be that The concept of interest in the view of Muslem Thinkers is no more than the contractual interest fixed in loan contracts. The contractual interest in loans is regarded as the obvious exercise of Riba; which is strongly prohibited in Islam. This attitude is so dominated that the bulk of Islamic writings has targeted money, rather than capital, as the fundamental concept related to the problem of interest. However, to solve tne problem of interest, a new paradigm would be trying to alter the conceptualization of money by an alternative theory of capital which substitutes natrual interest for contract interest. If so; it would be found out that there is no difference between interest and profit in essence. In economic world, profit can not come into existence if the ex ante natural rate of interest is omitted. Nevertheless, with resort to the concept of natural rate of interest, the economic raison d"etre of all kinds of contract interests can be explained and many controversies regarding the fundamental concept of interest, which are held between Islamic ideals and conventional practices, can be settled down.

By considering the importance of employment and it"s role in individual and social human predistination and in another view, the role of monetary policies" effect on the real economic variables like output and employment ended to study about cohesion of main sectors employment (agriculture, industry and se1Vices)and monetary policies variables as the chosen aim of this research. For this purpose monetary policy variables are classified by governmental and nongovernmental sectors. Cointegration vectors come to explain relations between variables. The results show that monetary supply changes through liquidity volume and banking system payments to governmental sector have direct relation with differences services employment while payment to nongovernmental sector has this balance with producing sectors of employment. Indeed increase of credit on nongovernmental sectors leads to entrepreneurship in producing sectors. So we suggest that in policy making among policy instrument of liquidity volume and credit variables focous on payment to nongovernmental sector with the aim of increasing employment .in producing sectors.

New Keynesian macroeconomics justifies the effectiveness of monetary policy by different theoretical arguments such as existence of long- term contracts, efficiency wages, co- ordination failure, unemployment hysterises, small menu costs and etc. An additional theoretical model, which has recently been developed, is the output-lags model, which creates a kind of price dynamics in economies, which in turn cause monetary policy to be effective. The purpose of this paper is to show that because of lags between inputs and outputs in the Iranian economy, monetary policy can affect real output and employment and hence cause real business cycles. Using this theoretical framework and macroeconomic data, the paper tests the effectiveness of monetary policy during the period 1959-2000 and show that there exists a one - year lag in output which has led to a kind of rigidity in the Iranian economy. As a result of this, output and employment can be affected by monetary policy.