Investigating the Effectiveness of the Interest Rate Monetary Policy Tool on Inflation Management in the Condition of the Banking System Imbalance and Analyzing the Imbalance Based on the Requirements of Islamic Banking
Investigating the effect of monetary policies on macroeconomic variables through the channels that transmit these policies is one of the most important topics in macroeconomics, because mastering the mechanisms that transmit these policies and the factors that affect them play a significant role in...
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Imam Sadiq University
2023-06-01
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| Series: | تحقیقات مالی اسلامی (پیوسته) |
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| Online Access: | https://ifr.isu.ac.ir/article_76675_86fa03bea4fb90eaf73e8bcf88dcf991.pdf |
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| author | Mohammad Shirijian Mohammad Reza Farzin Manijeh Hadinejad Marjan Daman Keshideh |
| author_facet | Mohammad Shirijian Mohammad Reza Farzin Manijeh Hadinejad Marjan Daman Keshideh |
| author_sort | Mohammad Shirijian |
| collection | DOAJ |
| description | Investigating the effect of monetary policies on macroeconomic variables through the channels that transmit these policies is one of the most important topics in macroeconomics, because mastering the mechanisms that transmit these policies and the factors that affect them play a significant role in adopting effective monetary policies and increasing the efficiency of these policies. According to Neoclassical and Keynesian economists’ viewpoints, monetary policies affect the level of total demand and subsequently inflation rate and production through four channels of interest rate, asset prices, exchange rate and credits, and among these, the interest rate channel is more important because of the mutual effect it has on the other three channels. But since the most important component in the implementation of monetary policies is the banking system, the quality and efficiency of the transfer of these policies largely depends on the conditions of that. This study, therefore, by using the theoretical analysis method, tries to answer the following questions: what are the reasons for the formation of imbalance in the banking system in terms of the theory and the basics of Islamic banking? And in the condition of banking imbalance, how could we explain the effectiveness of the monetary policy tool of interest rate on the management of the inflation variable? To answer this, first of all, the mechanisms of monetary policy transmission channels are elaborated in the condition of the banking system soundness, and then by examining and explaining the reasons for creating imbalances in the banking system from the operational aspect and from the perspective of Islamic banking, the manner of disrupting the transmission channel mechanism of the monetary policy of the interest rate to the inflation rate when there is an imbalance in the banking network, and the final result of the quality of the application of this policy to the inflation variable in the mentioned conditions are theoretically analyzed. |
| format | Article |
| id | doaj-art-7657ab07cc984752bef6f88763994667 |
| institution | Kabale University |
| issn | 2251-8290 2588-6584 |
| language | fas |
| publishDate | 2023-06-01 |
| publisher | Imam Sadiq University |
| record_format | Article |
| series | تحقیقات مالی اسلامی (پیوسته) |
| spelling | doaj-art-7657ab07cc984752bef6f887639946672025-01-26T16:05:46ZfasImam Sadiq Universityتحقیقات مالی اسلامی (پیوسته)2251-82902588-65842023-06-0112ویژهنامه اول؛ اولین همایش ملی بانکداری اسلامی ایران7310210.30497/ifr.2023.244287.181976675Investigating the Effectiveness of the Interest Rate Monetary Policy Tool on Inflation Management in the Condition of the Banking System Imbalance and Analyzing the Imbalance Based on the Requirements of Islamic BankingMohammad Shirijian0Mohammad Reza Farzin1Manijeh Hadinejad2Marjan Daman Keshideh3PhD student, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran. IranAssociate Professor, Department of Finance and Banking, Faculty of Management and Accounting, Allameh Tabatabai University, Tehran, IranAssistant Professor, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, IranAssistant Professor, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, IranInvestigating the effect of monetary policies on macroeconomic variables through the channels that transmit these policies is one of the most important topics in macroeconomics, because mastering the mechanisms that transmit these policies and the factors that affect them play a significant role in adopting effective monetary policies and increasing the efficiency of these policies. According to Neoclassical and Keynesian economists’ viewpoints, monetary policies affect the level of total demand and subsequently inflation rate and production through four channels of interest rate, asset prices, exchange rate and credits, and among these, the interest rate channel is more important because of the mutual effect it has on the other three channels. But since the most important component in the implementation of monetary policies is the banking system, the quality and efficiency of the transfer of these policies largely depends on the conditions of that. This study, therefore, by using the theoretical analysis method, tries to answer the following questions: what are the reasons for the formation of imbalance in the banking system in terms of the theory and the basics of Islamic banking? And in the condition of banking imbalance, how could we explain the effectiveness of the monetary policy tool of interest rate on the management of the inflation variable? To answer this, first of all, the mechanisms of monetary policy transmission channels are elaborated in the condition of the banking system soundness, and then by examining and explaining the reasons for creating imbalances in the banking system from the operational aspect and from the perspective of Islamic banking, the manner of disrupting the transmission channel mechanism of the monetary policy of the interest rate to the inflation rate when there is an imbalance in the banking network, and the final result of the quality of the application of this policy to the inflation variable in the mentioned conditions are theoretically analyzed.https://ifr.isu.ac.ir/article_76675_86fa03bea4fb90eaf73e8bcf88dcf991.pdfmonetary policyinterest ratebanking system imbalanceislamic banking requirementscreating liquidityinflation rate |
| spellingShingle | Mohammad Shirijian Mohammad Reza Farzin Manijeh Hadinejad Marjan Daman Keshideh Investigating the Effectiveness of the Interest Rate Monetary Policy Tool on Inflation Management in the Condition of the Banking System Imbalance and Analyzing the Imbalance Based on the Requirements of Islamic Banking تحقیقات مالی اسلامی (پیوسته) monetary policy interest rate banking system imbalance islamic banking requirements creating liquidity inflation rate |
| title | Investigating the Effectiveness of the Interest Rate Monetary Policy Tool on Inflation Management in the Condition of the Banking System Imbalance and Analyzing the Imbalance Based on the Requirements of Islamic Banking |
| title_full | Investigating the Effectiveness of the Interest Rate Monetary Policy Tool on Inflation Management in the Condition of the Banking System Imbalance and Analyzing the Imbalance Based on the Requirements of Islamic Banking |
| title_fullStr | Investigating the Effectiveness of the Interest Rate Monetary Policy Tool on Inflation Management in the Condition of the Banking System Imbalance and Analyzing the Imbalance Based on the Requirements of Islamic Banking |
| title_full_unstemmed | Investigating the Effectiveness of the Interest Rate Monetary Policy Tool on Inflation Management in the Condition of the Banking System Imbalance and Analyzing the Imbalance Based on the Requirements of Islamic Banking |
| title_short | Investigating the Effectiveness of the Interest Rate Monetary Policy Tool on Inflation Management in the Condition of the Banking System Imbalance and Analyzing the Imbalance Based on the Requirements of Islamic Banking |
| title_sort | investigating the effectiveness of the interest rate monetary policy tool on inflation management in the condition of the banking system imbalance and analyzing the imbalance based on the requirements of islamic banking |
| topic | monetary policy interest rate banking system imbalance islamic banking requirements creating liquidity inflation rate |
| url | https://ifr.isu.ac.ir/article_76675_86fa03bea4fb90eaf73e8bcf88dcf991.pdf |
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