The relationship between money supply, prices, government expenditures and economic growth in Iran economy

Fozieh Jeyhoon Tabar, Zahra Najafi, Yaser Sistani Badooei

Abstract


Economic growth is a quantitative index that measures countries' economic progress rate and its influencing factors are of critical importance. To achieve a high and stable growth is one of the macroeconomic policies objectives. In the present research short and long-term relationship of economic growth with money supply, inflation and government expenditures in Iranian economy were studied via the autoregressive distributed lag (ARDL) method during the years 1981-2011. It was concluded that all three variables have significant effects on economic growth

Keywords


economic growth, money supply, government expenditures

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