International Journal of Nonlinear Analysis and Applications

Analysis of the convergence of optimal monetary policies in Iran's economy and welfare

Articles in Press

Document Type : Research Paper

Authors

1 Department of Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Department of Economics, Allameh Tabatabaei University, Tehran, Iran

Abstract

This study analyzes the convergence of optimal monetary policies in Iran and their impact on societal welfare using a Dynamic Stochastic General Equilibrium (DSGE) model. It evaluates strategic monetary interventions for economic stability and growth, employing an analytical-descriptive and applied research method. The model was calibrated with annual data from 1390 to 1401 (Iranian calendar years) from the Statistical Center of Iran and the Central Bank. Results show that optimal monetary policies significantly enhance economic stability and welfare by controlling inflation, stabilizing exchange rates, and promoting growth. The study emphasizes the need for coordinated monetary and fiscal policies and greater central bank independence. It suggests exploring unconventional monetary policies during economic crises, providing valuable insights for policymakers and future research.

Keywords

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International Journal of Nonlinear Analysis and Applications

Articles in Press, Corrected Proof
Available Online from 16 March 2025
  • Receive Date: 04 September 2024
  • Revise Date: 11 November 2024
  • Accept Date: 14 November 2024