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:: Volume 5, Issue 1 (Winter 2009) ::
J. Mon. Ec. 2009, 5(1): 65-113 Back to browse issues page
Deficits, Debt Financing, Monetary Policy and Inflation in Developing Countries: Internal or External Factors? Evidence from Iran
Amir Kia
Department of Economics, Carleton University
Abstract:   (2610 Views)
This paper focuses on internal and external factors, which influence the inflation rate in developing countries. A monetary model of inflation rate, capable of incorporating both monetary and fiscal policies as well as other internal and external factors, was developed and tested on Iranian data. It was found that, over the long run, a higher exchange rate leads to a higher price and that the fiscal policy is very effective to fight inflation. The major factors affecting inflation in Iran, over the long run, are internal rather than external. However, over the short run, the sources of inflation are both external and internal.
Keywords: Debt financing, inflation, internal, external
Full-Text [PDF 708 kb]   (599 Downloads)    
Type of Study: Research | Subject: Monetary Economics
Received: 2014/04/21 | Accepted: 2014/04/21 | Published: 2014/04/21
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Kia A. Deficits, Debt Financing, Monetary Policy and Inflation in Developing Countries: Internal or External Factors? Evidence from Iran. J. Mon. Ec.. 2009; 5 (1) :65-113
URL: http://jme.mbri.ac.ir/article-1-32-en.html


Volume 5, Issue 1 (Winter 2009) Back to browse issues page
Journal of Money and Economy Journal of Money And Economy
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