The relationship between macroeconomic variables and asset prices in Iran in the period 1990-2010

Abstract The aim of current research was to investigate the impact of macroeconomic variables on asset prices during years between 1991-2010 in Iran. The macroeconomic variables included inflation rate, gross national income, interest rate, oil price and foreign currency equality. At the first, short term modes estimated. Then long term models estimated applying ARDL method and error correction equilibrium. At the end, tests for demand function structural stability applied. Results indicated: In long term, gross national production, oil income, liquidity and inflation have statistically positive significant impact and interest rate, loans and stock price index have a negative impact on housing prices. In long term, GDP and liquidity has positive impact on currency price while inflation and interest rate has negative impact on stock prices. The interest rate, the oil price and currency price has negative while inflation has a positive impact on gold prices. Interest rate causes the price lose in the currency. Keywords: Assets, Macroeconomic variables, Housing, Gold, Currency Price, Stock Price