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The Threshold Impact of Fiscal and Monetary Policies on Inflation: Threshold Model Approach

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  • Mehrara, Mohsen
  • Behzadi Soufiani, Mohsen

Abstract

The aim of this study is to examine the nonlinear effects of fiscal and monetary policies on inflation during 1990:3 to 2013:1 based on threshold model. First lag of the liquidity growth is recognized as threshold variable with threshold value estimated at 6.37 percent. In low liquidity growth, the results

Suggested Citation

  • Mehrara, Mohsen & Behzadi Soufiani, Mohsen, 2015. "The Threshold Impact of Fiscal and Monetary Policies on Inflation: Threshold Model Approach," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 10(4), pages 1-27, October.
    • Handle: RePEc:mbr:jmonec:v:10:y:2015:i:4:p:1-27
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