Title of article
The Effect of Financial Fragility on Macroeconomic Variables: TVP_VAR Model for the Iranian Economy
Author/Authors
Rezaee ، Alireza Department of Financial Management and Accounting - Yazd University , Fareed ، Dariush Department of Financial Management and Accounting - Yazd University , Ansari Samani ، Habib Department of Economics - Yazd Univesrity
From page
25
To page
40
Abstract
The present study aimed to investigate the effect of financial fragility on macroeconomic variables within a TVP-VAR model. For this purpose, first the financial fragility variable was calculated. Then, this study evaluated the effect of this variable on macroeconomic variables including economic growth rate, inflation rate, and exchange rate. In this study, the quarterly data for the period 2001-2020 were used. The results indicated that financial fragility had a negative effect on economic growth but a positive effect on exchange rate and inflation by creating uncertainty in the economy. In other words, financial fragility in Iran increased economic fluctuations by reducing economic growth and increasing inflation and exchange rates.
Keywords
Financial fragility , Inflation , Economic Growth , Iran , TVP , VAR model
Journal title
International Journal of Business and Development Studies
Journal title
International Journal of Business and Development Studies
Record number
2738485
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