Crisis Management: monetary policy compatible with the oil economy
Abstract
The purpose of this research is to explain monetary policy consistent with the country’s economic conditions. Hence, in this paper, we tried to evaluate the two states of the central bank’s reaction to the dynamic general equilibrium model adapted to the characteristics of the Oil-rich countries economy. In the first instance, the policy maker, with regard to the level of production, diverts inflation from target inflation and exchange rate policy. In the latter case, the basis for deciding the production deviation from potential production, the deviation of future inflation from target inflation and exchange rate, and in both cases, the use of policy experiences is also considered as a variable for policy.
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References
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