Public Economics
Ramin Amani; Saman Ghaderi; Khaled Ahmadzadeh
Abstract
Covid-19 has affected the world’s economy since 2019. The coronavirus pandemic is one of the most severe and dangerous problems that humanity has faced in the last century. Therefore, this paper aims to investigate the impact of Covid-19 on the inflation rate in the 36 OECD member countries. Monthly ...
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Covid-19 has affected the world’s economy since 2019. The coronavirus pandemic is one of the most severe and dangerous problems that humanity has faced in the last century. Therefore, this paper aims to investigate the impact of Covid-19 on the inflation rate in the 36 OECD member countries. Monthly data on Covid-19 and the inflation rate from February 2020 to August 2021 and the quantile panel regression method have been used to achieve this purpose. The results show that new cases of Covid-19 decrease the inflation rate in all quantiles, which means that by increasing the number of Covid-19 cases, economic activities decrease because of the business restrictions. Moreover, the new deaths of Covid-19 have a dual impact on the inflation rate in OECD countries. With increasing in Covid-19 deaths, business restrictions have increased, the economy has entered a recession, and inflation has decreased. On the other hand, the growth of Covid-19 casualties could increase economic uncertainty and inflation. Furthermore, Covid-19 vaccinations have positive and significant effects on the inflation rate in OECD countries. Accordingly, policymakers are advised to include increasing vaccine injections, especially booster doses, to increase economic activity and prosperity in OECD and world economies. Furthermore, Covid-19 showed the necessity of preparing the world against infectious diseases in the future.
Monetary economics
Ali Cheshomi; Fariba Osmani
Abstract
Despite the recession in global financial markets, the Tehran stock Exchange experienced significant growth during the COVID-19 outbreak. Therefore, this article tries to solve this puzzle by analyzes the effect of three Coronavirus waves on the total index of Tehran stock Exchange, its sub-indices, ...
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Despite the recession in global financial markets, the Tehran stock Exchange experienced significant growth during the COVID-19 outbreak. Therefore, this article tries to solve this puzzle by analyzes the effect of three Coronavirus waves on the total index of Tehran stock Exchange, its sub-indices, and the different industries with daily data of Iran and the regression method with multiple breakpoints. The results show that each wave of COVID-19 have different effects on the stock market. COVID-19 in the first wave had a negative effect on the index of industries such as refined petroleum, chemical, Metals and transportation but had a positive effect on industries such as medicine and food. But in subsequent waves, response of different industries to the new pandemic is complicated for two reasons. First, the nominal exchange rate has positive and significant effect on main industries such as motor mehicles, banks, refined petroleum, metals and chemical (which have a considerable weight in the Tehran Stock Exchange), can show the positive trend of the index, especially in the first and second waves of the COVID-19. Second, the government's manipulatian in raising the stock prices of these main industries to finance its budget deficit caused the Tehran Stock Exchange index to move in the opposite direction in some periods in response to the Corona virus.
