@article { author = {Rahmani, Abdolsamad and Samadi, Saeed and Bakhshi Dastjerdi, Rasul}, title = {Investigating the Effect of Financial and Monetary Policy on the Iranian Stock Market by Using DSGE Model}, journal = {Iranian Economic Review}, volume = {25}, number = {3}, pages = {509-523}, year = {2021}, publisher = {University of Tehran}, issn = {1026-6542}, eissn = {2588-6096}, doi = {10.22059/ier.2021.84146}, abstract = {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. }, keywords = {DSGE Modeling,Fiscal Policy,monetary policy,Stock Prices}, url = {https://ier.ut.ac.ir/article_84146.html}, eprint = {https://ier.ut.ac.ir/article_84146_1a5fde248c7fc82d69b32825168c82b9.pdf} }