In:
PLOS ONE, Public Library of Science (PLoS), Vol. 18, No. 10 ( 2023-10-5), p. e0291934-
Abstract:
Investigating the credit channel and monetary policy risk channel in Iran’s economy is the aim of this article. According to empirical studies, expansionary monetary policy increases the risk of banks, and on the other hand, the risk of banks affects economic activities and price levels. In order to investigate the mechanism of the credit channel and the risk channel (as a new channel), the effect of monetary policy on real variables and price levels in Iran’s economy, the Dynamic Stochastic General Equilibrium (DSGE) model has been used by entering the information of the banking system and considering moral hazard and adverse choices. The obtained results show that there is a credit channel and a monetary policy risk channel for Iran’s economy, and the expansionary monetary policy shock causes output, inflation, private sector consumption, investment, net worth in the economy and lending to increase. Also, when a credit shock occurs, with the increase in banks’ lending power, production, private sector consumption, investment, net worth and total lending increase and the inflation level decreases. Also, by applying the risk shock caused by the increase in inflation and the decrease in consumption and investment, the volume of lending increases and the level of production does not change much.
Type of Medium:
Online Resource
ISSN:
1932-6203
DOI:
10.1371/journal.pone.0291934
DOI:
10.1371/journal.pone.0291934.g001
DOI:
10.1371/journal.pone.0291934.g002
DOI:
10.1371/journal.pone.0291934.g003
DOI:
10.1371/journal.pone.0291934.g004
DOI:
10.1371/journal.pone.0291934.g005
DOI:
10.1371/journal.pone.0291934.g006
DOI:
10.1371/journal.pone.0291934.g007
DOI:
10.1371/journal.pone.0291934.t001
DOI:
10.1371/journal.pone.0291934.t002
DOI:
10.1371/journal.pone.0291934.t003
DOI:
10.1371/journal.pone.0291934.t004
DOI:
10.1371/journal.pone.0291934.t005
DOI:
10.1371/journal.pone.0291934.t006
Language:
English
Publisher:
Public Library of Science (PLoS)
Publication Date:
2023
detail.hit.zdb_id:
2267670-3
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