Journal of Money and Economy

The new paradigm in monetary policymaking gives accent to central banks‘ Independence. It is widely accepted that in modern monetary policymaking, central banks have three key goals: price stability, output stability and financial stability. Recent studies on central bank independence mainly investigate the effects of central bank independence on economic stability. But the effectiveness of central bank independence on financial stability after 2008 financial crises is controversial .This paper investigates the impacts of central banks’ independence On stock market volatility as a measure of financial stability. By using panel data for 53 selected countries for the 2004-2012 period, the results implies a positive relationship between central bank independence and stock market volatility.The findings is consistent with central bank credibility paradox.

Corporate Governance debates raised seriously in scandals and financial crisis of recent decades in large companies and banks. The focus of this debate is not merely the corporate governance system, and its main function is to preserve the interests of stakeholders. At the macro level, economic efficiency, sustainable growth and financial stability are important effects of the system. Establishing an efficient corporate governance system in the banking system and evaluating and ranking them requires a comprehensive model that encompasses all the internal and external mechanisms affecting corporate governance and localized indices and relevant international principles. In this research, corporate governance in banks has been evaluated via a model developed in the framework of systematic thinking which includes three dimensions 1) Inputs (structures and inputs), 2) Roles and processes, and 3) Outputs (goals, performance and results of them). The main objectives of this study are to evaluate the compliance status of 27 banks with the indicators of corporate governance model and their efficiency and effectiveness, as well as to examine the correlation between the components of corporate governance within the system including inputs, processes and outputs. According to the results, 47.8% of the qualitative indicators are covered in the current situation of the banks of the country, but there is a significant gap between the full compliance with the model. Based on the results in the performance sector, private banks scored the highest and state banks scored the lowest. The results of evaluating the correlation between the components of corporate governance model showed that there is a positive and significant relationship between the dimensions of inputs and processes with the goals, results and performance of banks. Accordingly, by improving the status of input indicators and the corporate governance model process, the status of target indicators, results and performance of banks will also improve

In many economies, commodity price volatility is one of the sources of signaling to market players. Different experiences of price shocks have led economists to reconsider price shocks. Considering the effects of monetary policy on the inflation rate, the present study investigates the impact of monetary policy shock on the price of storable food commodities. In this regard, data for 2006: 01 to 2016:12 for Iran was investigated. The results show that a one percent increase in money supply and the interest rate on deposits increases food prices in the long-term by 0.18 percent and 0.82 percent, respectively.

In order to analyze the labor market through search and matching theory, we need deep parameters namely, rate of inflow to the unemployment pool and job-finding rate. In other words, these rates are primary parameters of matching function; hence, estimating these parameters is an essential step for the use of search and matching theory in every economy. In this paper, we estimate these rates of Iran’s economy using Simulated Method of Moments (SMM) as a baseline for future studies in this framework. We use the unemployment rate and the number of unemployed workers which were unemployed less than one month. We find estimates of around 0.1 and 0.32 for rate of inflow to unemployment and job-finding rate, respectively, which are lower than the amounts estimated for the United States and other developed countries. This is a sign of some labor market irregularities in Iran economy. For example, it shows that the probability of experiencing long-term unemployment/employment by unemployed/employed ones is high because of lower job-finding and inflow to unemployment rates.

The aims of the present study are developing a financial stability index (FSI) using banking indices to measure financial stability in Iran, and examining the relationship between financial stability and macroeconomic variables for policymaking. To these ends, we have employed principal-component analysis, out of sample forecasting, Autoregressive Integrated Moving Average (ARIMA) method, and Vector Error Correction Model (VECM). The monthly data period is spanning 2007:3 through 2017:2. We find evidence of one cointegrating vector. According to the cointegration test, there is a long-run relationship running from inflation, Gross Domestic Product (GDP) growth rate, and unemployment to FSI. Also, the results of the Engle-Granger test indicate bidirectional causality between FSI and unemployment. Forecast evaluation shows that VECM-based FSI prediction is more accurate than the ARIMA model.

Though financial services outsourcing has been increasing during the last decades, most outsourcing projects have failed due to qualitative criteria used in decision-making as well as being unaware of differences in environmental circumstances. This study aims at designing a model of deciding on outsourcing in state banks. The data of this applied, developmental research was collected, using descriptive-survey method and two instruments, namely, interview and quantitative were used in qualitative and quantitative sections, respectively. The sample of the study comprises of banking experts working in six state banks and the Central Bank of Iran. The initial model was derived, based on an analysis of the aspects of variables as well as the indices obtained from the theoretical principles and previous studies. The final research model, which consists of 6 factors and 22 subfactors was developed, using the Fuzzy Delphi Method and in triple consultation with 20 banking experts. The criteria were weighted, and the relationship between the criteria was examined, using F-DEMATEL method and ANP. The results of the study indicate that the following are the most significant criteria driving the decisions made by state banks on activities outsourcing: reliance on service providers, cost, the rapid delivery of services by the contractors, gaining competitive advantage, the existence of multiple contractors, improved control and overseeing.