وحید شیخعلی

Article 3 of the new law of the Central Bank of the Islamic Republic of Iran identifies supporting economic growth and employment as one of its primary objectives. Moreover, other articles of this law also assign the Governor of the Central Bank the responsibility of submitting periodic reports to relevant authorities regarding the degree of achievement of this objective. In economic literature, expansionary monetary policy is usually mentioned as the Central Bank’s tool for supporting economic growth. However, with a redefinition of this role, it can be argued that this path is not exclusive, and the Central Bank can also exert positive and significant influence on economic growth through two alternative channels: maintaining banking stability and promoting banking technologies. Using the Panel ARDL method for D8 countries, the empirical results confirm that the coefficients of variables related to banking stability and banking technology have a positive and significant impact on economic growth, consistent with the theoretical foundations of this study. Hence, the objective envisioned by the legislator in the new law can be pursued by the Central Bank of Iran through these two channels as well.