THE MCKINNON-SHAW MODEL IN IRAN'S ECONOMY

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

SHAKERI ABAS; KHOSRAVI H.

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH) Year:2005 | Volume:4 | Issue:14 Page(s): 109-126

Download Full-Text

Persian Verion

View:

1,650

Download:

Cites:

Information Journal Paper

Title

THE MCKINNON-SHAW MODEL IN IRAN'S ECONOMY

Author(s)

SHAKERI ABAS | KHOSRAVI H. | Issue Writer Certificate

Keywords

BANK INTEREST RATEQ2

INVESTMENTQ2

FINANCIAL DEVELOPMENTQ2

FINANCIAL LIBERALIZATIONQ3

FINANCIAL REPRESSIONQ4

Abstract

This paper attempts to shed light on the appropriate BANK INTEREST RATE policy in the process of economic development, which has recently caused controversy and hot debate. To this end, it is empirically examined whether higher real BANK INTEREST RATEs are associated with higher INVESTMENT rates in Iran. The issue is important since higher INVESTMENT rates are associated with higher rates of economic growth.It is found that the INVESTMENT rate generally goes up with real interest rates (up to 2 percent) in Iran economy but starts declining at still higher interest rates (1973-2000). Further, a banking crisis occurred for which real interest rates exceeded 2 percent, providing some support to Stiglitz's argument that high real interest rates may cause undue riskiness in banks' loan portfolios.This evidence rejects the Neostructuralist argument that higher BANK INTEREST RATEs would generally lower INVESTMENT at all interest rates. Nor does it support unbridled FINANCIAL LIBERALIZATION. Yet, it provides only limited support to Stiglitz's case for "mild FINANCIAL REPRESSION (real interest rates near zero)" since reducing real interest rates from say, under 0 percent would have reduced INVESTMENT rates in Iran's economy. The optimum monetary policy seems to be closest to the position of Stiglitz who advocates 'mild FINANCIAL REPRESSION'.

Cites

References

درسهایی از سیاست آزادسازی مالی

Cite

APA: Copy

SHAKERI, ABAS, & KHOSRAVI, H.. (2005). THE MCKINNON-SHAW MODEL IN IRAN'S ECONOMY. JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), 4(14), 109-126. SID. https://sid.ir/paper/86387/en

Vancouver: Copy

SHAKERI ABAS, KHOSRAVI H.. THE MCKINNON-SHAW MODEL IN IRAN'S ECONOMY. JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH)[Internet]. 2005;4(14):109-126. Available from: https://sid.ir/paper/86387/en

IEEE: Copy

ABAS SHAKERI, and H. KHOSRAVI, “THE MCKINNON-SHAW MODEL IN IRAN'S ECONOMY,” JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), vol. 4, no. 14, pp. 109–126, 2005, [Online]. Available: https://sid.ir/paper/86387/en

Related Journal Papers