Journal of Economic Studies and Policies
Year:2019 | Volume:6 | Issue:1 (11)|Papers Count:12

This paper aims to optimize the level of central bank transparency corresponding to the minimum of financial market volatility in selected states of the Organization of Islamic Cooperation (based on the maximum data availability) during the period 2002-2014. To this end, the Dincer and Eichengreen index was used, which includes five aspects covering the political, economic, procedural, policy, and operational transparency. The index ranges in numerical value from 0 to 15 with 0 being the most opaque and 15 the most transparent. By applying the Arellano-Bond GMM estimation and using the Dincer and Eichengreen index as a proxy of transparency, the optimal level of the central bank transparency is derived. The results indicate that an increase in the level of central bank transparency will decrease financial market volatility up to a certain point, after which additional information from central banks begins to exacerbate it. Also, except for the unemployment rate, which has no significant effect on the financial market volatility, the effects of other variables (financial depth, inflation history, and oil rents-GDP ratio) on financial market volatility are positive. Therefore, moving with caution towards monetary policy transparency is recommended because the financial market volatility can be reduced considerably, implying significant benefits for financial stability.

The provision of social justice and the elimination of poverty and deprivation through the creation of a balance in the distribution of income and wealth among the people is taken into consideration a Long ago time. Meanwhile, two categories of economic growth and fair distribution of income, which are among the main economic issues, are controversial. In the theoretical foundations of the conventional economy, growth is prior on the equal distribution of income. Accordingly, in the current study, these two issues will be tested for selected Islamic countries during the years 2012-2016. The results show that there is a two-way causal relationship between economic growth and income distribution. By analyzing the impulse response function, it was found that improvement in income distribution situation leads to a positive response from economic growth. Nevertheless, the positive shocks of economic growth make the distribution of income more inappropriate. Therefore, the interaction between economic growth and inequality of income in Islamic countries is contrary to Islamic teachings.

In Keynesian theory, fiscal policy is more efficient than monetary policy. While some other schools, such as monetarism, believe greater efficiency for monetary policies. The question of which of the monetary and financial policies in Iran's economy is more efficient is the central question that the present study seeks to answer. In this study, the impact of changes in money supply as monetary policy representative and changes in government spending as fiscal policy representative have been investigated on Iran's economy. The research has been done in the framework of a new Keynesian dynamic stochastic general equilibrium model using time series data during 1979-2013. The economy's general equilibrium contains 15 equations which have been extracted from behaviors optimization of households and firms besides government and Central Bank policy rules. Parameters estimation has been done by using Bayesian method and calibration. The results showed that the shock of increasing the volume of money increased production, investment, employment and inflation. Also, the shock of increasing government spending increased production, employment and inflation but reduced investment. Results indicate that the impact of government spending shock is more than the money supply shock. Also, durability of government spending shock is more than the same in money supply shock.

One of the most important principles in the successful implementation of monetary policy is the central bank's financial strength, which can have significant impacts on the success of the implementation of these policies. Therefore, in this study, the effect of the central bank's financial strength on the inflation rate of the Iranian economy in the period of 1978 to 2015 has been studied. Also, the method used to estimate the model is Autoregressive Distributed Lag (ARDL). The results of this study indicate that the increase of the central bank's financial strength during the short and long term reduced the price index by-0. 66% and-0. 16%, respectively. The increase of the central bank's financial strength puts the central bank's balance sheet in a good place, as well, it will increase the efficiency of its monetary policies of this entity and reduce inflation rate.

Mutual funds are among the institutions that provide for the participation of people in the economy and, used to implement Sections 9 and 19 The general policies of the resilience imparted by the Supreme Leader. This research seeks to identify the components that ensure the safety of mutual funds. Then compares them between Iran and the United States. The data are qualitative and the method of research is thematic analysis using thematic network analysis, and its approach is deductive. In Islamic countries, especially Iran, the design of mutual funds, while respecting Islamic jurisprudence, must also be persuading for investors. The results show that the components affecting the safety of mutual funds are identified in the three organizing themes including "continuous monitoring", "standards of eligibility of managers of the fund" and "avoidance of conflicts of interest". According to the results, the most important deficiencies of mutual funds in Iran are in three parts: internal control and risk control, disclosure of information, and "conflict of interests and deal with individuals Affiliated ".

The method of allocating regional government capital funds play an important role in defending, reducing inequality and ultimately regional sustainable development. Therefore, there is a high sensitivity to the financial behavior of the government, especially in the allocation of provincial capital funds. Accordingly, in this research, is discussed an analysis the model of provincial capital allocation with efficiency-based and equal-based approach in the period (2005-2016). The specification of the provincial capital allocation model has based on the generalization of the mathematical model of the Castels and Sole-Olle (2005) and Sole-Olle (2013), budget allocation. The results show that an increase in government spending expenditure reducing provincial capital credits. Also, the allocation of capital funds was efficiency-bases and has been mostly allocated to provinces that have produced higher production. In addition, inequality in regional production has had a negative effect on the allocation of government capital funds. As a result, the allocation of provincial capital funds was not equality-based. Therefore, a review of provincial budget allocation is necessary.

The composite index as tools of governance have an effective role in identifying the status quo and designing regulatory interventions to achieve the required status. The social justice index, which assesses the status of social justice in the EU member, that in recent years it is also used in other countries. Due to the lack of familiarity with this index inside and the lack of statistical data on some of the measurements of this combined index, so far no estimation of the status of Iran from the perspective of this indicator has been made. The present research has tried to estimate status of social justice in Iran by using SJI. The results of this measurement and estimation show that the total score of the combined social justice index increased from 8 in 2006 to 8. 4 in 1395. This increase has been caused by the performance of the government in reducing poverty and supporting low income levels; however, the trend in the labor market, health, education and intergenerational justice is alarming.

In the economic literature, theories of fiscal decentralization have been taken into consideration in order to increase efficiency and productivity of the public sector and regional balance. It is important to mention that without paying attention to dimensions, features and results of this policy, decentralization may cause harmful results as imbalance in country areas and intense political tension. Considering two main goals of growth and justice viewed by economists and planners, the quality effect of fiscal decentralization on these two variables is important. The main aim of this current research is to evaluate fiscal decentralization on economic growth in Iran provinces during 1385-1393. In order to achieve this aim the spatial econometrics method in frame of tabular information was used to study the fiscal decentralization effects. The achieved results show that fiscal decentralization has positive effect on economic growth in terms of income index and negative effect on economic growth in terms of expenditure index in Iran provinces.

This paper examines the effect of exchange rate increase on Iran's manufacturing industries labor demand for the period of 2001-2016, by using the dynamic panel generalized method of moments (GMM). The exchange rate influences the demand for labor through two channels: first, while an increase in exchange rate makes home products cheaper relative to foreign products, increases the manufacturing product demand and has a positive effect on labor demand. Second, an increase in exchange rates makes imported inputs more expensive and, consequently, increases production costs that decrease demand for labor. The net effect of employment changes that caused by the exchange rate depends on the sum of these two channels. The results of this study show that the net effect of increasing exchange rate on employment of manufacturing industries is negative and significant, which indicates the high dependence of the manufacturing process in manufacturing industries on foreign inputs.

Economic rent is complex and multidimensional phenomenon with multiple causes and effects. In recent years, in spite of the complexity and sensitivity of dealing with this complication, studies on the measurement of rent, the causes and ways of deterrence have been conducted by scientific and international assemblies. This article, using fuzzy logic, describes how to model economic relations, introduces a new algorithm for rent estimation in the period of 1981-2014 in Iran with an economic approach. The results of the research show that, with the assumption that "size of government" and "economic security" are the economic key determinants of rent, the trend of the economic rent fuzzy index of Iran during in period has fluctuated between 0. 43 and 0. 72 and has the ascending progress during this period. It is worth noting that, during the period under review, the lowest level of fuzzy economic rent index is related to the two periods of 1983 and 1987 and the highest rate of fuzzy economic rent index is related to the year 1993.

The identification and explanation of the relationship between inflation and unemployment in the country’ s economy has a special place in the process of economic and political decision-making. Assessing the relation between inflation and unemployment can help policymakers and economists to assess economic performance. Phillips curve is one of the most famous relationships in the macro economy which explores the relation between inflation and unemployment. The New Keynesian Phillips Curve was formed in the 1990s based on nominal rigidity and rational expectations, and has been widely used in dynamic inflation models and in the study of monetary policy. This study estimated a Hybrid New Keynesian Phillips Curve in Iran between years 1995: 1-2017: 4 using a dynamic stochastic general equilibrium model and exploring the effects of technology, cost push, government expenditures, oil, and monetary shocks on inflation. The results of this study showed that the proposed model simulates the periodic behavior and variations of the variables as well. Also, government expenditure, cost push shocks increased inflation and technology, oil, and monetary shocks decreased inflation.

The purpose of the present study is to investigate the role of policy instruments such as interest rate and exchange rate on inflation targeting in the new Keynesian model in terms of heterogeneous economic agents' expectations (HANK). In this study, the model of rational expectations and constrained expectations based on adaptive expectations model is used to apply constraints of expectations shaping operators in economic agents to predict macroeconomic variables. The results indicate that expected inflation is a factor affecting inflation. In this case, it can be said that in order to control the inflation rate, one important policy that should be followed by the central bank is to control and manage expectations. The output gap coefficient, as expected, is negative. This rate reflects structural problems with the supply of goods. The results indicate that the major factor affecting inflation is the money growth rate. In this channel model, the effect of money growth rate on inflation is expected inflation, which is a considerable amount given the high rates of money growth in recent years. So the growth of the money supply will have a huge impact on the inflation rate.