Paper Title
The Impact of Monetary and Exchange Policies on the Country‟s Trade Balance Fluctuation with the Approach of Dynamic Stochastic General Equilibrium (DSGE) Models

Abstract
This paper uses the framework of the new Keynesian school and the literature of the Dynamic Stochastic General Equilibrium (DSGE) models, to build an estimate general model for the Iran economy. By simulating the effects of the implementation of monetary and foreign exchange policies through the policy instruments, bank interest rate, central banks international reserves and the nominal exchange rate, are measured on the macroeconomic variables, the real trade balance, production gap, inflation rate, real exchange rate and foreign assets.Monetary and currency policies are arranged in the form of three policies rules, simple rule, optimal simple rule and optimal policy under commitment.For convenience, the three alternative monetary regimes are denominated managed exchange rate, floating exchange rate and pegged exchange rate.The results have shown that in all the rules of the policies the central exchange regime (managed) scenario is superior to other foreign exchange regimes and leads to less fluctuations in the model's endogenous variables. Keywords - Trade balance; Dynamic Stochastic General Equilibrium (DSGE); Monetary and currency policy; Stable Equilibrium Mode