Banking
Meysam Amiri; samira farahani
Abstract
In recent decades, the functioning of financial markets and banks have undergone significant changes, and many institutions similar to the functioning of traditional banks have grown outside the regulatory structure of the central bank, which is referred to as shadow banking. Instead of focusing on the ...
Read More
In recent decades, the functioning of financial markets and banks have undergone significant changes, and many institutions similar to the functioning of traditional banks have grown outside the regulatory structure of the central bank, which is referred to as shadow banking. Instead of focusing on the traditional activities of traditional banks, shadow banking uses a more diverse set of resources and tools and it has been able to create changes in economic risks and also be effective in the changes and economic policies of countries. In this study, in order to estimate shadow banking and its relationship with traditional banking, between 2011 and 2021, the modeling of the money demand function in the framework of a system of simultaneous equations was used along with the MeinflexLarent function, which has flexibility. Also, according to the discussion of variance of heterogeneity, BEKK GARCH model was used to estimate the model to help solve the existing heteroscedasticity. The investigations and results of this research show that during the last decade, shadow banking has grown at an increasing rate, and in the last decade, conventional banking and shadow banking replaced each other based on Morishima's substitutability elasticity index. Also, the results show that the spillover effect of short-term deposit shocks and fixed income funds on Islamic bonds is positive, incremental and significant.On the other hand, the effect of the series of shocks of fixed income funds on cash and short-term deposits has been meaningless.
Madjid Hatefi Madjumerd; Omolbanin Jalali; Alireza Kafiri
Abstract
The main objective of this study is to evaluate the effect of saving rate on money demand function’s regime change in the framework of nonlinear smooth transition auto-regressive method covering the period 1352-1396. In this regard, the linear model was tested against nonlinear model and it revealed ...
Read More
The main objective of this study is to evaluate the effect of saving rate on money demand function’s regime change in the framework of nonlinear smooth transition auto-regressive method covering the period 1352-1396. In this regard, the linear model was tested against nonlinear model and it revealed that nonlinear model is better. Then, the nonlinear logistic model is distinguished by using Trasvirta test. The results indicated that error adjustment speed in linear models is different from nonlinear ones. Adjustment speed is different in various interest rates. If interest rate of bank deposits is very low, money demand function will quickly adjust itself. As the interest rate of deposits increase, the adjustment speed of money demand function will decrease.
Fathollah Tari; Abdorreza Shapouri
Volume 17, Issue 51 , July 2012, , Pages 1-19
Abstract
It is assumed that there are some changes in the payment system with application of information technology in this field, so that for many of retail payments we do not need cash. Changes in payment methods, create changes in money demand which may have significant economic effects. In this study the ...
Read More
It is assumed that there are some changes in the payment system with application of information technology in this field, so that for many of retail payments we do not need cash. Changes in payment methods, create changes in money demand which may have significant economic effects. In this study the effect of changing in payment methods, from paper-based to electronic ones, on money demand function is estimated using a panel of time series data from 2002 to 2010. By applying econometric methods, we conclude that development of electronic payment could have negative effect on money demand.
Seyyed Safdar Hosseini; Mohammad Reza Bakhshi
Volume 8, Issue 28 , October 2006, , Pages 1-13
Abstract
This Paper investigates impacts of macroeconomic variables on the demand for money in Iranian economy using an auto regressive distributed lag model (ARDL) and the data for the period 1340-1382. The results indicate that there is a unique cointegrated and stable long-run equilibrium relationship between ...
Read More
This Paper investigates impacts of macroeconomic variables on the demand for money in Iranian economy using an auto regressive distributed lag model (ARDL) and the data for the period 1340-1382. The results indicate that there is a unique cointegrated and stable long-run equilibrium relationship between the real demand for money and its determinants such as: real GDP, interest rate, and inflation rate. These results reveal that the demand for money in Iranian economy is more sensitive to the real GDP than to the other macroeconomic variables (long term interest rate and inflation rate). Moreover, the long-term income and inflation elasticity of money demand is 2.620 and 0.038, respectively. This shows that money demand function is more elastic with respect to long-term income and inelastic with respect to price level. Also, adjustment coefficient for money demand is estimated to be 0.19. This means that the adjustment process for money demand would take 5 years.
Morteza Sameti; Madjid Sameti; Gholamhosein Gaafary
Volume 7, Issue 24 , October 2005, , Pages 95-116
Abstract
Fiscal disequilibrium causes budget deficit. The budget deficit is usually financed by borrowing from central bank, which increases monetary base and money supply followed by a rise in price level and inflation. The process of generating revenue and financing budget deficit by creating inflation is also ...
Read More
Fiscal disequilibrium causes budget deficit. The budget deficit is usually financed by borrowing from central bank, which increases monetary base and money supply followed by a rise in price level and inflation. The process of generating revenue and financing budget deficit by creating inflation is also known as inflation tax. Relationship between inflation and income generated by this process is not linear. The government income at first has increasing trend, and after reaching its maximum point would fall. It is very similar to the Lafer curve.
In this paper, the inflation propensity of money velocity has been determined by using the monetary and fiscal data, which has been used to obtain the optimum size of money growth. The optimum size shows that how much money should be printed by government without generating inflation.
