An Analysis of the Determinants of Stagflation in Iran and Policy Recommendations

In this paper، theoretical principals of stagflation based on schools of economics has introduced and periods of stagflation has been tested during the years 1980 to 2013 by Haan and Sumner (2004) method. Based on، Berthold and Gründler (2012)، factors that cause stagflation in the economy in the form of count data، ML Poisson count، censored and Ordinary Least Square have been estimated. The results indicate that، first، Iranian economy during the years 1980 to 1993 and 2006 to 2013 suffers by stagflation. Second، Stagflation of Iran is not only a monetary phenomenon، but also، it depends on the low productivity of labor. Third، the main cause of stagflation in the economy is not liquidity، but it is discretion monetary policy.