Survey of Effect of Financial Repression on Inflation at Iran Economy

Subject Areas : Financial Knowledge of Securities Analysis

اعظم  احمدیان ¹ (ندارد)
حسین  امیری ² (ندارد)

Received: 2011-10-15 Accepted : 2012-02-16 Published : 2012-06-09

Keywords: Financial repression, Inflation, vector auto regressive,

Abstract :

One of the most important goals of economic policy maker is accessing to lowinflation. Accessing to this goal, promote the life standards. For this purpose variedpolicy is decided. One of these in Iran is financial repression. Financial repressioninclusive decreasing at interest rate, increasing at liquidity rate and legal reserve rate.In this essay we analyses effect of financial repression on inflation. To carry outthis analysis, we employed vector auto regressive method from 1352 t0 1387, timeseries data of Iran. The result shows increasing at legal reserve rate, increasinginflation.