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The effective factors on inflation in Iran

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Author Affiliations

  • 1Department of Agricultural Economics, University of Zabol, Zabol, Iran
  • 2Department of management and accounting, University of Payamnoor Greshm Branch Greshm, Iran
  • 3Master of Industrial Engineering, University of Payamnoor Greshm Branch Greshm, Iran

Res. J. Recent Sci., Volume 5, Issue (3), Pages 34-39, March,2 (2016)

Abstract

We can show the importance of studying inflation through its effects and costs. The inflation process and its special aspects have been considered considerably in Iran in recent decades so that we can see contradictory results. In this paper we have considered the main determinants of inflation in Iran in fact we considered different and main factors that are effective in inflation according to different aspects. The combination of theories about inflation emphasizes the surveying of the short-term and long-term relationship between inflation and the major determinants in 1961-2008. We used an empirical model that is called ARDL so that we paid attention to the effect of liquidity, value added services, dummy variables, imported price index, the private sector investment, exchange rate and the variation of CPI in per year and in exchange system. The empirical results revealed that the most important factors are: Imported inflation, the size of government and expected inflation are effective on inflation in Iran.

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