The Role of Monetary Policy in Iran's Economy (1338-1383)

This paper examines the usefulness of monetary and fiscal policy on real and nominal variables in Iran’s economy. Our analysis is based on annual data from 1338 to 1383, employing SUR method. The results indicate that none of the two policies, monetary and fiscal, have impact on real variables, but the role of thoese pPolicies on prices are remarkable. Accordingly, it is concluded that real variables in Iran’s economy cannot be affected by monetary and fiscal policies, but disinflationary effects of theise policies are important.