Document Type : Original Article
Authors
1
Ph.D. Candidate, Department of Economics, Faculty of Strategic Management, Supreme National Defense University, Tehran, Iran.
2
Associate Professor, Department of Accounting, Faculty of Management and Accounting, Islamic Azad University, Tonekabon Branch, Mazandaran, Iran.
3
Assistant Professor, Department of Systems and Productivity Management, Faculty of Industrial Engineering & Systems, Tarbiat Modares University,Tehran, Iran.
4
Associate Professor, Department of Economics, Institute for Trade Studies and Research. Tehran, Iran.
Abstract
The main objective of this paper is to examine the influence of monetary policy and total factor productivity on the industrial sector of Iran. By assuming the Iranian economy and the division of the economy into two sectors (namely, the industrial and other economic sectors), and drawing on the seasonal data between the years 2000-2022 and the Central Bank's Input-output table for 2016, the paper adopts a suitable dynamic stochastic general equilibrium model based on the regional New Keynesian framework. After assigning values to some parameters obtained in previous studies and deriving an estimation regarding some of them, the variables were simulated and compared with real data to validate the model.
The results of the model simulation indicate that the total factor productivity shock of the industry sector's (as well as the total factor productivity shock of other sectors) has increasing effects on total production, production of the industry sector, production of other sectors, consumption and has had a reducing effect on inflation in the economy. Also, the shock of liquidity growth will cause the growth of total production, industrial sector production and other sectors production and will increase consumption, employment and inflation.
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