Monetary economy
Soheil Roudari; Masoud Homayounifar; Mostafa Salimifar
Abstract
In this research, the role of nominal exchange rate volatility and business cycles on the banking nonperforming loans was investigated by using Markov-Switching model during 2005-2018 using seasonal data. Business cycles were extracted from GDP by using the Hodrick Prescott filter. Also, the wavelet ...
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In this research, the role of nominal exchange rate volatility and business cycles on the banking nonperforming loans was investigated by using Markov-Switching model during 2005-2018 using seasonal data. Business cycles were extracted from GDP by using the Hodrick Prescott filter. Also, the wavelet transform model was used to extract nominal exchange rate fluctuations. The results showed that the exchange rate volatility varies in different periods of time and in longer period of time, the foreign exchange rate volatility has a greater negative and significant effect on nonperforming loans of banking network. It shows a dependence of government on banking network. Also, the impact of business cycles depends on the nonperforming loans regime. The sustainability of low regime is bigger than high regime. The results also show that the impact of value added of different sectors of economy varies in different regimes of nonperforming loans. These results indicate that banking system should take into account the value added of different sectors of economy and nonperforming loans regimes which could decrease nonperforming loans.
Hamidreza Horry; Seyyed Abdolmajid Jalae; Maryam Lashkari
Abstract
In any society, government officials and policymakers must take well-being into consideration as it is one of the main indicators of development and also a key element of social growth and development. Evaluating economic well-being during successive, inevitable periods of boom and recession helps evaluating ...
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In any society, government officials and policymakers must take well-being into consideration as it is one of the main indicators of development and also a key element of social growth and development. Evaluating economic well-being during successive, inevitable periods of boom and recession helps evaluating the effectiveness and efficiency of policies and aids economic policymakers in making better decisions. This study aimed to investigate the effects of business cycles on economic well-being index in Iran for the 1980-2016 period. To measure well-being, the Osberg index of economic well-being was used and each component fit was assigned a weight using the Delphi method. Then, in a model suited for Iranian economy, the impact of business cycles was estimated using a gravitational search algorithm. The findings of the Delphi method indicate that economic security component has the highest weight among the four components of this index. Model evaluation revealed that business cycles are directly related to the economic well-being index, indicating that the boom and recession periods of business cycles have respectively led to the improvement and decline of economic well-being index in Iran.