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ISSN (e) 2286-170X
ISSN (p) 1453-0503

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Relationship between price and money stock in Iranian economy (1961-2008)

 

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  1. Authors:
      • Mohammad Reza Babaei Semirumi, Afiliation: Mazandaran Payame Noor University Iran

    Pages:
      • 212|226

  2. Keywords: money stock, price indexes, Iranian economy, Causality test, stationary test

  3. Abstract:

    The main purpose of this paper is to investigate the relationship between money and inflation in the Iranian economy with cagan(1956) money demand function . In doing so,I have first reviewed theoretical and empirical literature of causality throughout the world and then it be used Granger’s method for detecting causality between money and inflation in the Iranian economy. according to this working paper elasticity of demand for real balances in money market toward inflation for Iranian economy are approximately 0.9 and Money is exogenous reward to WPI,CPI and PPI in Iranian economy.

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