Seyed Hamid Armand; AbdolMohammad Kashian
Volume 6, Issue 1 , June 2022, , Pages 121-152
Abstract
One of the effective factors in managing and controlling sanctions is managing its psychological effects. Naturally, sanctions have a number of psychological effects, including fluctuations ...
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One of the effective factors in managing and controlling sanctions is managing its psychological effects. Naturally, sanctions have a number of psychological effects, including fluctuations in the vital markets of the economy, and as a result, dealing with them properly plays an important role in managing market fluctuations. This article analyzes the interaction between the psychological aspects of sanctions and foreign exchange market, housing and stock market risk using the (VAR) model. The results of this model show that there is a correlation between the psychological effect of sanctions and the risk of market in the short and longterm. The psychological effect of sanctions increases the risk of foreign exchange and stock market and reduces the risk of fluctuations in the housing market, and in contrast, the increased risk of currency and stock market fluctuations leads to an increase in the psychological effect of sanctions on society. In other words, the public perception and mental image created in society show the effectiveness of sanctions and this is a great help to sanctioners to increase pressure. it is suggested that by minimizing the psychological aspects of sanctions, showing their insignificance, the pressures of market fluctuations are largely controlled.
