Assessing the Impact of Overflow of Legal and Excess Reserves of the Central Bank of Iran on Inflation Rate in the Economy of Iranian Society Application of MGARCH-BEEK Model

The study of inflation in Iran indicates fluctuations in it. Instability Inflation affects many economic variables. On the other hand, inflation and its instability are affected by economic variables, including the behavior of the central bank, such as changes in the monetary base components. Therefore, the purpose of this paper was to investigate the overflow of fluctuations in the central bank's legal and additional reserves on inflation rate fluctuations in the Iranian economy during the period 1352: 1 to 1395: 4 using the MGARCH-BEEK model. The results showed that the shocks and fluctuations of the inflation rate were not significant on the fluctuations of legal reserves and additional reserves. While shocks caused by legal reserves and excess reserves have a significant negative impact on inflation fluctuations. Legal reserve shocks also had a direct impact on excess stock fluctuations. But excess reserves shocks have a negative impact on legal reserve fluctuations. Based on the results of inflation rate fluctuations, it has had a direct and significant effect on fluctuations in excess reserves. Fluctuations in legal reserves and additional reserves on inflation fluctuations were also significant. Therefore, the overflow of fluctuations in legal reserves and additional reserves on inflation rate fluctuations in the Iranian economy occurs significantly and leads to increased inflation fluctuations.