Document Type : Original Article
Authors
1 Assistant Professor, Department of Economics, Faculty of Literature and Humanities Islamic Azad University, Kerman Branch, Kerman, Iran.
2 Associate Professor, Department of Economics, Faculty of Literature and Humanities Islamic Azad University, Kerman Branch, Kerman, Iran.
Abstract
The motivation of the present study is to design a stochastic dynamic general equilibrium model with the aim of investigating the resilience of macroeconomic variables and environmental quality in the face of CBDC shock. For this purpose, after setting the parameters based on the seasonal data of the Iranian economy during the period 2004.03.20-2022.04.21 , the model was simulated in different scenarios and with respect to the degree of price stickiness. The results showed that consumption, non-oil production, and total production increase in response to the impulse of the central bank's digital currency issuance; but inflation responds with a lag. Due to the increase in production, environmental quality decreases. In addition, comparing the results of the change in the degree of economic stickiness shows that the dynamics of all variables in response to the CBDC shock have not changed and only its intensity is more severe in the scenario of no price stickiness. Therefore, in an economy with price elasticity, the resilience of production, inflation, consumption, and environmental quality variables to the CBDC shock is greater.
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