The Role of Quantitative Easing on the Stability of Financial Markets in Iran
In the present study, the role of quantitative easing on the stability of financial markets in Iran has been analyzed from the quarterly data of 2006-2021 using the econometric model with vector error correction model (VECM). To estimate the model from some observable variables, the effects of quant...
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| Format: | Article |
| Language: | English |
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University of Sistan and Baluchestan
2024-12-01
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| Series: | International Journal of Business and Development Studies |
| Subjects: | |
| Online Access: | https://ijbds.usb.ac.ir/article_8733_b9088b8fd2fdeef38aa3c5cc5353aec3.pdf |
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| author | Seyed Majid Rasolpour Arabi Ahmad Jafari Samimi Amir Mansour Tehranchian Majid Aghaei |
| author_facet | Seyed Majid Rasolpour Arabi Ahmad Jafari Samimi Amir Mansour Tehranchian Majid Aghaei |
| author_sort | Seyed Majid Rasolpour Arabi |
| collection | DOAJ |
| description | In the present study, the role of quantitative easing on the stability of financial markets in Iran has been analyzed from the quarterly data of 2006-2021 using the econometric model with vector error correction model (VECM). To estimate the model from some observable variables, the effects of quantitative easing on financial market variables, including (liquidity volume, capital adequacy rate, credits granted to the private sector by banks, bank deposit interest rate, stock market index and exchange rate) were estimated. The data was extracted from the official website of the Securities and Exchange Organization and the Central Bank. In VECM models, the estimation was done in both short-term and long-term periods with the aid of Eviews software. The findings of the research, based on the estimation of long-term and short-term relationships, show that quantitative easing has a positive and significant effect on the stability of financial markets. With the MP1 index increasing by one percent, the Financial Market Stability Index increased by 4.157 percent. |
| format | Article |
| id | doaj-art-d13f1fde4de54a2f84dba8fb86eb3863 |
| institution | Kabale University |
| issn | 2538-3302 2538-3310 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | University of Sistan and Baluchestan |
| record_format | Article |
| series | International Journal of Business and Development Studies |
| spelling | doaj-art-d13f1fde4de54a2f84dba8fb86eb38632025-01-15T06:03:05ZengUniversity of Sistan and BaluchestanInternational Journal of Business and Development Studies2538-33022538-33102024-12-0116210311910.22111/ijbds.2024.50399.21718733The Role of Quantitative Easing on the Stability of Financial Markets in IranSeyed Majid Rasolpour Arabi0Ahmad Jafari Samimi1Amir Mansour Tehranchian2Majid Aghaei3PhD candidate at the University of Mazandaran CorresppondingProfessor of Economics, Department of Economics, Faculty of Economics & Administrative Sciences, University of Mazandaran, Babolsar, IranProfessor of Economics, Department of Economics, Faculty of Economics & Administrative Sciences, University of Mazandaran, Babolsar, IranAssociate professor, Department of Economics, Faculty of Economics & Administrative Sciences, University of Mazandaran, Babolsar, IranIn the present study, the role of quantitative easing on the stability of financial markets in Iran has been analyzed from the quarterly data of 2006-2021 using the econometric model with vector error correction model (VECM). To estimate the model from some observable variables, the effects of quantitative easing on financial market variables, including (liquidity volume, capital adequacy rate, credits granted to the private sector by banks, bank deposit interest rate, stock market index and exchange rate) were estimated. The data was extracted from the official website of the Securities and Exchange Organization and the Central Bank. In VECM models, the estimation was done in both short-term and long-term periods with the aid of Eviews software. The findings of the research, based on the estimation of long-term and short-term relationships, show that quantitative easing has a positive and significant effect on the stability of financial markets. With the MP1 index increasing by one percent, the Financial Market Stability Index increased by 4.157 percent.https://ijbds.usb.ac.ir/article_8733_b9088b8fd2fdeef38aa3c5cc5353aec3.pdfquantitative easingstability of financial marketsvector error correction model approach |
| spellingShingle | Seyed Majid Rasolpour Arabi Ahmad Jafari Samimi Amir Mansour Tehranchian Majid Aghaei The Role of Quantitative Easing on the Stability of Financial Markets in Iran International Journal of Business and Development Studies quantitative easing stability of financial markets vector error correction model approach |
| title | The Role of Quantitative Easing on the Stability of Financial Markets in Iran |
| title_full | The Role of Quantitative Easing on the Stability of Financial Markets in Iran |
| title_fullStr | The Role of Quantitative Easing on the Stability of Financial Markets in Iran |
| title_full_unstemmed | The Role of Quantitative Easing on the Stability of Financial Markets in Iran |
| title_short | The Role of Quantitative Easing on the Stability of Financial Markets in Iran |
| title_sort | role of quantitative easing on the stability of financial markets in iran |
| topic | quantitative easing stability of financial markets vector error correction model approach |
| url | https://ijbds.usb.ac.ir/article_8733_b9088b8fd2fdeef38aa3c5cc5353aec3.pdf |
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