In this paper, we study the effects of monetary and fiscal policy on agricultural sector growth using a Structural Vector Analysis Regression (VAR), the reduced form of model. We determined the long-run variables vectors. Then, by using the Johansen co-integration method, for the years 1972-2002 three long-run vectors in which they related to aggregate supply and demand and equilibrium conditions in agricultural sector were estimated.Using the estimated long-run and short-run relationship, we analyzed the effects of monetary and fiscal policies on agricultural growth in that sector. The results show the expansionary (contractionary) fiscal policy in the short- run does not affect the agricultural growth rate, but in the long-run it has a positive (negative) effect. Also, the effect of expansionary (contractionary) monetary policy in the short-run does not affect the growth rate in agricultural sector but in the long-run it reduces (increases) the growth rate in that sector.

The term core inflation which means identifying inflation-targeting Policies came to use in the last decade. With the help of this concept, i. e. core inflation, proposed policies can control inflation exerting any no negative effect on production. Various methods have been suggested for assessing core inflation, including many statistic methods and economic methods. Due to the fact that the term core inflation is commonly used in the developing countries, this research uses the structural vector autoregressive method to assess the core inflation in Iran, taking into consideration the special condition of its economy. By using the joint trends of the three variables, i.e. petroleum revenue, public expenditure and liquid assets, we can make a sharp distinction between core inflation and non core inflation. The results of this research show that inflation cannot be controlled without restricting the role of petroleum revenue and the vacillations related to it in deciding real variables like economic growth and policy- making variables like liquid assets and governmental expenditure, and also show that inflation can be controlled through political variables like public expenditure and liquid assets. The above mentioned procedures have no negative influence on economic growth.      

This study analizes the dynamic effects of oil price shocks on macroeconomic variables using structural vector auto regression (SVAR). To identify structural innovation from VAR residual, we use the Blanchard and Quah (1989) technique, imposing a set of long-run economic restrictions that are added to purely statistical restrictions of VAR. To derive these long-run restrictions we generalize Haffmaister and Roldos (1997) model using annual data to a typical oil exporting country during 1960-2003. This model is applied for Indonesia, Kuwait and Saudi Arabia as well as Iran, and the results are compared. The result of this study shows that exogenous degree of oil price in Saudi Arabia is lower than Iran and Indonesia. Oil price shocks play a substantial role in explaining Gross Domestic Product (GDP) and imports movements in Saudi Arabia and Iran, while import shocks is the main source of output and import fluctuations in Indonesia and Kuwait. For all countries, the effects of oil price shock on output, import and consumer price is positive and external shocks are the main source of all fluctuations in long-run.

Recent discussions on macroeconomic policy in developing and developed countries have emphasized the crucial role played by the real exchange rate in the adjustment process. There'1s a growing agreement that sustained real exchange rate misalignment will usually generate severe macroeconomic disequilibria through affecting macroeconomic variables.This study aims to investigate the sources of macroeconomic variable Fluctuations in Iran focusing on real exchange rate. We implement the model with a structural VAR model and variance decomposition technique using annual macro-economic time series data of the Iranian economy from 1970to 2005.The findings suggest that real exchange rate fluctuations in Iran are mostly explained by monetary shocks as well as oil price shocks. Moreover, the results show that major part of income fluctuations in Iran are due to the price shocks, oil price shocks, money shocks, and supply shocks.This paper recommends that diversifying the economy,' developing infrastructure, stabilizing prices, increasing investment, reducing money fluctuations, and controlling money supply may well then contribute to improve growth performance in the economy. According to our results, money disturbances and oil prices effect significantly real exchange rate fluctuations. So, this paper suggests that conducting monetary policy requires a greater caution to stabilize the economy.

This study analyzes effects of oil revenue shocks on macroeconomic variables using structural vector auto regression (SVAR). To identify structural innovation, we use the Blanchard and Quah (1989) technique, imposing a set of long-run economic restrictions. The restrictions derive from macroeconomic theories. The model is applied for Iran, Indonesia, Saudi Arabia, and United Arab Emirates and the results are compared. According to results, highest vulnerability to oil income fluctuations belongs to Saudi Arabia, Iran, UAE and Indonesia respectively.

In this paper, an attempt is made to investigate the exchange rate pass-through to consumer and import price indexes by utilizing the Structural Vector Autoregressive (SVAR) model" Impulse Response Functions and Choleskey Ordering Variance Decomposition Analysis on a seasonal basis during 1990to 2004.The results show that, the exchange rate pass-through to import price index is stronger in relation to consumer price index. This fact has relatively higher share of tradable goods in import conformity with the price index as compared to the consumer price index as a whole. On the other hand, the impact of money supply shocks on the consumer price index in comparison with import price index is much stronger and faster. This phenomenon is important for the monetary policy makers. So the low amount of exchange rate pass- through provides more opportunity to follow an independent monetary policy, specially, through inflation targeting approach.

The main purpose of this paper is to investigate the sources of real exchange rate fluctuations in Iran by decomposing real exchange rate fluctuations into those attributable to real and nominal shocks. Using a structural VAR model along with Impulse-Response Function and Variance Decomposition Method, we find that real demand shocks play a significant role in explaining real exchange fluctuations in the context of the Iranian economy. About 85 percent of these fluctuations come from real demand shocks. Real supply shocks account for about 12 percent of the real exchange rate fluctuations in Iran. The overall result shows that real shocks dominate nominal shocks in real exchange rate fluctuations in Iran at all horizons.

The main purpose of this paper is to investigate the sources of real exchange rate fluctuations in Iran by decomposing real exchange rate fluctuations into those attributable to real and nominal shocks. Using a structural VAR model along with Impulse-Response Function and Variance Decomposition Method, we find that real demand shocks play a significant role in explaining real exchange fluctuations in the context of the Iranian economy. About 85 percent of these fluctuations come from real demand shocks. Real supply shocks account for about 12 percent of the real exchange rate fluctuations in Iran. The overall result shows that real shocks dominate nominal shocks in real exchange rate fluctuations in Iran at all horizons.