TY - JOUR ID - 6095 TI - The Impact of Oil Shocks on Foreign Trade in Iran: The Role of Inflation Targeting Policy JO - Quarterly Journal of Applied Theories of Economics JA - ECOJ LA - en SN - AU - Behrad-Amin, Mehdi AU - Zamanian, Gholamreza AU - Esfandiyari, Marziyeh AD - Phd Candidate in Economics, University of Sistan and Baluchestan AD - Associate Professor of Economics, University of Sistan and Baluchestan AD - Assistant Professor of Economics, University of Sistan and Baluchestan Y1 - 2017 PY - 2017 VL - 4 IS - 1 SP - 1 EP - 28 KW - Inflation targeting KW - Foreign Trade KW - Oil shock KW - DSGE model DO - N2 - In this paper, we evaluate the effect of inflation targeting policy in absorption and reduce the negative impacts of oil shocks on foreign trade. In this regard, in order to evaluate the impact of this policy on the economy of Iran, we used a modified New Keynesian dynamic stochastic general equilibrium framework for a small open economy. We estimate the model using Bayesian approach over the period 1989-2014. The results of the simulation model variables indicate that inflation targeting policy in relation to the failure to adopt this policy, has been reduced the severity and duration of negative effects of oil revenues shock. This policy has been quite successful in controlling inflation and the severity of the decline in exports and increase in imports is reduced in case of shock. Also, in the inflation targeting regime, the decline in non-oil production and total production after the shock has been less severe. UR - https://ecoj.tabrizu.ac.ir/article_6095.html L1 - https://ecoj.tabrizu.ac.ir/article_6095_adf0d136842d3d95e46ba9da8ed9fd8c.pdf ER -