seyed reza nakhli

Since the nationalization of the oil industry, especially after the 1979 revolution, Iran has always encountered economic sanctions. The oil embargo and international financial sanctions are the most severe sanctions imposed on Iran and have had significant effects on Iran’s macroeconomic variables. The current study aimed to analyze the effects of economic sanctions on Iran’s macroeconomic variables using a dynamic stochastic general equilibrium (DSGE) model based on the new Keynesian approach. The simulation results showed that the intensification of the oil and international financial sanctions would 1) reduce foreign and government investment, technology innovation, export in the oil sector, and consequently oil production, 2) lead to a higher exchange rate and a decrease in the ratio of the central bank foreign exchange reserves to the monetary base, 3) reduce the GDP and non-oil exports and increase the inflation, which may cause stagflation, 4) increase household consumption and decrease household investment, 5) increase budget deficit, forcing the government to adopt policies to raise current expenditures and maintain housing and urban development budget, which, in turn, will lead to a budget deficit and bond sales. The analysis of various optimal monetary policies in the context of economic sanctions and considering the contingent business interruption (CBI) loss function showed that the optimal simple rule, in the form of the producer price index, targeting monetary policy, could reduce the loss function and increase the importance value of output coefficient in themonetary policy.

“Anfal” and natural resources are viewed as significant sources of financial resources that Holly Shariah assigns their ownership to the Islamic state to pursue the public goals. On this topic, policy-making for management of these resources, and control of their depletion is of paramount importance whereas appropriate policies in natural resource management and Anfal can lead to sustainable development and intergenerational interests. In this paper we introduce principles and policies for utilization of Anfal resources. After addressing the ideas of Islamic jurists (Foghaha), we select the theory and definition of Imam Khomeini about Anfal as a basis for analysis and consequent reviewing of Hadith and historical issues on Anfal, we conclude that Muslem´s interests (Maslehat) and society’s benefit is the main criteria for utilizing Anfal. Finally, according to the duties of Islamic government, we introduce a policy prescription for allocation of revenues from Anfal in the areas such as Justice, Economic Infrastructures, Human Development and Necessities. As a result we can assert that given a successful management of Anfal and natural resources, Islamic government can pursue many essential goals of society.