The Impact of Monetary Policy on the Housing Sector through the Credit and Exchange Rate Channels in Iran: A Vector Error Correction (VEC) approach

Document Type : Scientific paper

Authors

1 PhD student, Department of Economics, Islamic Azad University, Isfahan Branch, Isfahan, Iran.

2 Associate professor, Department of Economics, Islamic Azad University, Isfahan Branch (Khorasghan), Isfahan, Iran

3 Associate Professor, Department of Economics, Islamic Azad University, Isfahan Branch, Isfahan, Iran.

Abstract

The main purpose of this study is to analyze the effects of monetary policy on the housing sector through credit channel and exchange rate channel in Iran using the Vector Error Correction (VEC) approach. An examination of the empirical results of estimating the relationships between variables in1368:1-1397:1 period showed that the small impact of these two channels on the transfer of monetary policy affects the housing sector if monetary policy is transferred through the banking system's lending channel to the housing sector, the volume of money has the greatest impact on the production and price of the housing sector, and if monetary policy through The exchange rate channel is shifting to the housing sector, the debt of the banks to the central bank has the greatest impact on the production and the price of the housing sector.

Keywords

References

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Macroeconomics Research Letter
Volume 15, Issue 30
January 2021
Pages 62-83

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History

  • Receive Date: 10 December 2019
  • Revise Date: 09 January 2021
  • Accept Date: 31 January 2021

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