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The Impact of Financial Uncertainty on Monetary Policy, Inflation and Output in Iran: A Markov Jump-Linear-Quadratic (MJLQ) Approach

Karim Eslamloueyan; Sara Mehralian

Volume 20, Issue 65 , February 2016, , Pages 1-36

Abstract
  Using a Markov Jumping Linear Quadratic (MJLQ) method, this paper examines the impact of financial uncertainty on monetary policy in Iran in the context of a new Keynesian model. This model allows us to study the impact of financial uncertainty on inflation and output gap. We allow the economy to switch ...  Read More