The Effect of Monetary Policy on Production in the 80

The aim of this paper is to evaluate the effects of monetary policy (credit policy) on production in the 80s. Because the other policies (fiscal policy and economic policies)have effects on the production as well, we must review these policies. Besides, because of the effects of other economic policies such as fiscal policy on production,their review is unavoidable. Therefore, we will summarize the economic situation of the 1380’s in chronological order. Then we will focus on the effects of economic policies on the production. The monetary policy and its instruments will constitute the main part of the discussion. It is worthy to note that the existence of un-authorized non-bank financial institutions make our analysis of monetary policy and its implications, biased. According to our preliminary estimates, the share of the non-bank financial institutions of total banking system deposits is about 33 percent which is very significant figure. The decade started with optimism and positive expectations. However, at the end of the decade, this optimism was largely replaced with anxiety. It means that the economic policies (including monetary policy) did not lead to desired results.

کلیدواژه ها:

Monetary Policy ، Production ، 1380s ، Fiscal Policy