Cover IMF Working Papers
Buy Book in Print
Money and Inflation in the Islamic Republic of Iran
Author:
Mr. Leo Bonato
Search for other papers by Mr. Leo Bonato in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2007: Issue 119
Language:
English
Publication Date:
01 May 2007
DOI:
https://doi.org/10.5089/9781451866834.001
ISBN:
9781451866834
ISSN:
1018-5941
Pages:
17
Keywords:
WP; price level; rate of return; inflation equation
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (412.5 KB) Download Epub
This paper looks at the determinants of inflation in Iran. Unlike the traditional estimates of the demand function for real money balances, the approach followed here focuses on the relationship between nominal variables and inflation. The model estimates are used to address the questions raised by the decline in inflation that occurred up to the first half of 2006, looking at the structural stability of the estimated relationships and the ability of the model to predict inflation at the end of the sample. The estimates confirm the strong relationship between money and inflation when M1 is used, with no evidence of a structural change.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund