The Effects of Monetary Shocks on Iran Economic Sectors

Empirical studies show that money has real effects in short-run but is neutral in long-run. According to transmission chanels of monetary policy، there is a possibility that each sector has a different response to monetary shocks. This paper، using the BVAR method and seasonal data، investigates the sectoral effects of monetary shocks during 1988: Q2 to 2011: Q2. The results show that monetary shocks have real effects in short-run and the reaction of sectors are different. In addition، the effects of moneatary shocks on services and industry sectors are stronger than on agriculture sector.