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Macroeconomic performance has improved in many countries in the world in the last fifteen years or so. Much of the literature has concentrated on how central bank independence, inflation targeting regimes, and currency :::union:::s have contributed to improving the effectiveness of monetary policy and hence macroeconomic performance. Since the financial system is a key component of the monetary transmission mechanism, we study how a country’s financial development affects monetary policy efficiency in 28 developed and developing countries within 1995-2006. Specifically, our objective is to derive monetary policy efficiency measures (PEMs) - derivative from Krause and Rioja- for 28 Developed and developing countries and analyze the impact that the size and depth of the banking sector and the capital sector have on policy performance. In our empirical analysis we use three financial development measures: private credit, liquid liabilities, and a financial aggregate index that comprises banking and stock market measures. The Results of model estimation with generalized method of moments (GMM) technique, shows that financial development with mentioned indicators has a positive and significant effect on monetary policy efficiency. Also supervision in central bank independency and inflation targeting regimes -as control variables- has positive and significant effect on monetary policy efficiency. This result doesn’t make a difference whether the country is developed or developing and in the both of them more developed financial markets, controlling the central bank independency and applying inflation targeting regimes, significantly help to achieve a more efficient monetary policy.

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  The ultimate goals of the monetary policy are price stability and the output growth. Monetary policy instruments are interest rate and the growth rate of monetary base. One of the well-known rules in conducting monetary policy is Taylor rule, through which, central banks change the interest rate while taking into account the output and inflation distortions. There are two problems with applying Taylor rule in Iran: First, the weak micro-foundation of the rule and second, according to this rule specially in the short run, instead of interest rate the policy variable is the growth rate of the monetary base. This research extends Taylor rule by explaining micro-foundation of the rule. So, using Generalized Method of Moments (GMM), we investigated the consistency of the Iranian central bank’s reaction function with extended Taylor rule in the period 1979- 2008. The empirical results show that although monetary authorities react appropriately with respect to output distortion, but their reaction is not appropriate with respect to inflation distortion.

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Since the liquidity shortage has some undesirable consequences for banks, the evaluation of different strategies of providing liquidity is very important. In normal market conditions, there are plenty of adjustment strategies available for banks which allow them to have higher liquid assets when they face higher payment obligations. This paper mainly focuses on three strategies of liquidity management in country's banking system in above conditions. The main aim of current paper is to test three strategies of liquidity management based on the recommendations of Basel Committee in the condition of increasing the payment obligations of the banking network, by applying Generalized Method of Moments (GMM) method. We used the data from 20 Iranian commercial banks for the period 2001-2009. Results show that there is a positive relationship between payment obligations and securities stock growth rates and also between payment obligations and repayments of loans growth rates. However there is a diverse relation between payment obligations and long-term loans growth rates.

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In the current structure of world economy, imports play an important role in the economic development strategy. Although taking the suitable policies for the imports of goods and services is important, but taking the correct strategy is subject to factors affecting imports. In the most of empirical studies, imports are a function of real income and real exchange rate. So, the effect of income inequality on imports of goods and services has less been investigated. Whereas, increase in income inequality causes an increase in the purchasing power of high income people and demand for imported luxury goods and also causes a change in the composition of domestic and imported consuming goods. This study examine the effect of income inequality on import of goods and services in 17 developed countries and 18 developing countries in the period 1990-2010 using generalized method of moment (GMM) analysis. The results indicate that there is a positive relationship between income inequality and imports of goods and services in developed countries while this relation is negative in developing countries. Furthermore, the relationship between GDP and imports of goods and services is positive in both groups of countries, while the relationship between real exchange rate and imports of goods and services is negative in both groups. Thus, policy makers should redistribute income and wealth in favor of the low income people and motivate them to participate in the production sectors, reduce the inequality gap and improve their competitiveness power in the market and enhance the income from the abroad.

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Natural resources as wealth in general and oil and natural gas in particular can have a potentially beneficial impact on the economic prosperity. However, economic experience implies that many of the major oil exporting countries are facing instability in economic growth, Dutch Disease, corruption and under- development. Owing to the fact that natural resources can play a vital role in development, the present study tries to investigate the econometrics relationship between export of natural resources (as a proxy for abundance) and governance indicators (as alternative variables for institutional development) in selected oil-exporting and OECD countries through the application of Generalized Moment of Method (GMM), for the period lasting from 1996 to 2011. Findings of the study revealed that the strong and statistically significant evidence confirms the negative impact of the export of natural resources on the governance index, quality of regulations, rule of law and control of corruption in the selected OPEC’s member countries. Nevertheless, such a negative impact does not have any statistically significant strength in developed countries. This is due to the improvement made in the surveillance, technical and executive mechanisms of the institutions in the selected OECD countries. It seems that the enormous incomes accrued from the export of natural resources in the oil producing countries in question will induce a decrease in transparency and accountability, instability and frequent changes in economic policies, extension of rent-seeking, corruption and authoritarianism.

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Financial institution as a non-bank financial institutions, institutions that are active in mediating funds in financial markets. Services are in many ways similar to the services provided by banks. Because the relationship between the development of non-bank financial institutions and Iranian gross domestic production (GDP) seem important. In this context, the main objective of this study was to investigate the effect of non-bank financial institutions in the areas of facilities of GDP contracts with other variables such as per capita GDP and employment effects on the labor force for the period 1999Q1-2013Q4. To estimate the Generalized Method of Moments (GMM) is used to model estimation results indicate a significant positive impact on the development of non-bank financial institutions and facilities with regard to Islamic contracts. The per capita income and employment variables have a significant positive impact on GDP respectively.