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Title
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The Effect of Money Volume Growth on Formation and Stability of Inflation Regimes in Iran Economy
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Type
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JournalPaper
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Keywords
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oney volume growth, inflation regime, Markov switching model.
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Abstract
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In this paper an attempt is made to study the role of monetary policy of the central bank in the increasing of money volume growth and its effects on both formation and stability of inflation regimes in Iran economy using seasonal data from 1989-2016. Accordingly, in some models, Markov switching model may have been explained by supposing the confirmed and explained transition probabilities have been expanded by inflation rate variable. Based on the results of the modeling, in medium inflation regime and high inflation rate regime, the meaningful effect of money volume growth on inflation was not identified. The results of Markov switching model with explained transition probabilities have indicated the positive effect of money volume growth in continuing the medium inflation periods in Iran economy.
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Researchers
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Shafih ayar (Fourth Researcher), bahman Gholami (Third Researcher), mohsen khezri (Second Researcher), abdolhamid Shams (First Researcher)
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