Examining the Dynamic Effects of Money Supply, Exchange Rate and Inflation in Iran

Given the importance of important economic variables because of affecting nature on the economic system, examining the relationship between exchange rate and money supply and growth rate of GDP are some of the research priorities for research economists and economic policy makers. Fundamental variables such as inflation, as one of the major economic problems that makes some problems for the economyʹs productivity and economic exchanges and exchange rate in terms of the countryʹs dependence on foreign exchange from the oil sale are such variables that analyzing their influence on each other is essential. In this article using VAR method, this subject has been discussed during the period 1357-1390. In this article analysis tools include the impulse response and variance decomposition. According to the results, money supply has most effect on inflation in Iran and using Johansen test it shows long-run equilibrium relationship between variables.