The Effects of Exchange Rate Unification on the Iranian Economy

Abstract

The exchange rate unification is one of the most important instruments of economic adjustment, which is used in many countries. <br />This paper shows the effects of the exchange rate unification on price level (inflation), gross domestic production (GDP), non-oil exports, private conception, government expenditure and stock of money. The data, is used related to the period 1959-2000. To analyze the above-mentioned effect we employed a model of nine simultaneous equations. The method used to estimate the model is 2sls. After the estimation, the model is simulated by Newton method in order to determine the effects of unification on the endogenous variables the model.