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.
Rahmani, A. , Samadi, S. , & Bakhshi Dastjerdi, R. (2020). Investigating the Effect of Financial and Monetary Policy on the Iranian Stock Market by Using DSGE Model. Iranian Economic Review, (), -. doi: 10.22059/ier.2020.76093
MLA
Abdolsamad Rahmani; Saeed Samadi; Rasoul Bakhshi Dastjerdi. "Investigating the Effect of Financial and Monetary Policy on the Iranian Stock Market by Using DSGE Model", Iranian Economic Review, , , 2020, -. doi: 10.22059/ier.2020.76093
HARVARD
Rahmani, A., Samadi, S., Bakhshi Dastjerdi, R. (2020). 'Investigating the Effect of Financial and Monetary Policy on the Iranian Stock Market by Using DSGE Model', Iranian Economic Review, (), pp. -. doi: 10.22059/ier.2020.76093
CHICAGO
A. Rahmani , S. Samadi and R. Bakhshi Dastjerdi, "Investigating the Effect of Financial and Monetary Policy on the Iranian Stock Market by Using DSGE Model," Iranian Economic Review, (2020): -, doi: 10.22059/ier.2020.76093
VANCOUVER
Rahmani, A., Samadi, S., Bakhshi Dastjerdi, R. Investigating the Effect of Financial and Monetary Policy on the Iranian Stock Market by Using DSGE Model. Iranian Economic Review, 2020; (): -. doi: 10.22059/ier.2020.76093
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