Investigating the Effect of Financial and Monetary Policy on the Iranian Stock Market by Using DSGE Model
نویسندگان
1 Faculty of Administrative Science and Economics, University of Isfahan, Isfahan, Iran
2 Faculty of Administrative Science and Economics, University of Isfahan, Isfahan, Iran
3 Faculty of Administrative Science and Economics, University of Isfahan, Isfahan, Iran
doi
10.22059/ier.2021.84146چکیده
This paper uses a dynamic stochastic general equilibrium model to investigate the effect of fiscal and monetary policy on the stock market in Iran. Results show that a positive money shock leads to a rise in output, stock price index, and inflation. In addition, the response of the stock demand to money supply shock is negative. We found that a positive government expenditure shock led to a rise in output and inflation. The response of stock demand and stock price index to the government expenditure shocks are negative. Furthermore, results show that a stock market shock leads to a rise in output and inflation.
