Monetary economics
Roozbeh Balounejad Nouri; Amir Ali Farhang
Abstract
the relationship between oil revenue, exchange rate, and M2 on the CPI and PPI, over time of 2005:1-2022:1, was investigated in Iran with QARDL method used. The results showed that, in the short run, all the variables had an asymmetric effect on the CPI and the PPI. oil revenues, in the long run, from ...
Read More
the relationship between oil revenue, exchange rate, and M2 on the CPI and PPI, over time of 2005:1-2022:1, was investigated in Iran with QARDL method used. The results showed that, in the short run, all the variables had an asymmetric effect on the CPI and the PPI. oil revenues, in the long run, from the quantile of 0.05 to the median, the impact of the variable on the inflation would be increased, and then its impact would be decreased. also, in the long run, the effect of the increase on the PPI is greater than the consumer price index. In the long run, the effect of exchange rates on the CPI and the PPI was nonlinear while being symmetric. because from the quantile of 0.2 to 0.8, its effect proportionally increased and then decreased. also, regarding the M2, the results showed that this variable on the CPI and the PPI had an asymmetric effect, in the short run. in this way, from the middle quantile to the quantile of 0.9, its effect was positive and significant, and in the long run, the results confirmed its positive effect on inflation in all quantiles; although, its effect on the PPI was asymmetric.
