In this article, the relation between inflation rate and bank interest rate was considered on the basis of Taylor rule using econometric techniques over the period of 1996-2010. Taking Taylor rule into account, the inflationary gap and production gap were first calculated and then, their relation with bank interest rate was investigated. To do so, the features of stability and convergence were tested among the variables. The obtained results showed the variables’ stability at the first difference and their convergence on the basis of two criteria of λ trace and λ max. The obtained results of the regression model showed the existence of a negative relation between bank interest rate and the inflationary gap. Therefore, it is concluded that Iran’s central bank has always emphasized on production increase in order to solve the problem of unemployment and has not paid attention to the problem of inflation.
کلید واژگان :Monetary Policy, Monetary Strategy, Taylor Rule, Bank Interest Rate, Inflationary Gap
ارزش ریالی : 600000 ریال
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