investigating the effect of financial and monetary policy on the iranian stock market by using dsge model

This paper uses a dynamic stochastic general equilibrium model to investigate the effect of fiscal and monetary policy on the stock market in iran. results show that a positive money shock leads to a rise in output, stock price index, and inflation. in addition, the response of the stock demand to money supply shock is negative. we found that a positive government expenditure shock led to a rise in output and inflation. the response of stock demand and stock price index to the government expenditure shocks are negative. furthermore, results show that a stock market shock leads to a rise in output and inflation.