Impulse for business cycles in Iran are largely generated from oil price (terms of trade) shocks and propagated through fiscal policies. The classic mission of monetary policy is to conduct countercyclical policy, however, this is not a universal norm. Pro-cyclical fiscal and monetary policies...

This paper develops a new Keynesian DSGE model compatible with the structural characteristics of commodity exporting developing economies (financial vulnerability, relatively high pass-through rates, procyclical fiscal policy, and high terms of trade volatility) to compare the performance of...

This paper reviews the theoretical arguments and counter arguments regarding central bank optimal communication policy in an environment with imperfect common knowledge and strategic complementarity. More specifically, the paper discusses the environment in which full transparency is no longer...