Proper understanding of the concept of INFLATION and the factors affecting it is essential to achieving price stability. Despite the same general understanding of the concept of INFLATION, there is still no consensus among economists on the causes, so in recent years, many empirical studies in the country have identified and examined the factors affecting INFLATION. Since INFLATION is affected by various macroeconomic variables, this study has addressed this issue using the DSGE model. The data used were quarterly between 2002 and 2016, when the response of INFLATION to the SHOCKs of monetary policy, fiscal policy, currency and stock price index was positive; In contrast to import tariff rate SHOCKs, oil revenues and overall productivity have been negative. Among the SHOCKs, monetary policy SHOCKs have also had the most impact.

Iran is one of the oil exporting countries, so the oil price plays a remarkable role in the government budget and is a major source of foreign exchange. On the other hand, the reliance of the government budget to oil income as well as its fluctuations is a fact referred to as the most important cause of INFLATION by many researchers. This paper explores the effect of SHOCKs in the exchange rate, oil price, and production as the three main SHOCKs in the economy on the most important variable in Iran’ s macroeconomy, i. e. price level. So, the vector auto-regression (VAR) model is used with seasonal data for the period of 1991-2016. After the model is estimated, impulse response functions are calculated and analysis of variance is performed to figure out the contribution of each SHOCK in the variance of the prediction error of these variables. The results show that the strong dependence of exchange rate on foreign exchange earnings of oil price allows the rapid growth of the prices in Iran and the effect of the SHOCK is increasing over time. Also, sanctions in 2012 did not reduce oil price, but they influenced the exchange rate and INFLATION significantly.

The aim of this study was to investigate the effects of direct taxes on macroeconomic variables, such as GDP and INFLATION. For this purpose, a dynamic stochastic general equilibrium model has been developed. The results showed that a SHOCK of standard deviation in corporate taxes could reduce the GDP by 0. 13% and reduce the INFLATION rate by 0. 01%. In fact, raising taxes on companies reduces investment by 1. 5 percent. Also, the creation of a SHOCK in the income tax of the labor force to the extent of a standard deviation causes the GDP to decrease by 0. 0074%, which is due to the decrease in the supply of labor. By applying income tax SHOCK, the supply of labor will be reduced by 0. 012%. The effect of SHOCK on GDP is eliminated after 10 periods. INFLATION rises to 0. 025 percent, then decreases to a stable level in less than a year.

The goal of this research is to study how tax justice improvement is considered in financial statements preparation and calculated accounting income by INFLATION effects decreasing or write-off. In order to do this research methodology used in this research is a deductive-descriptive method which is confirmed by literature study to have access to the best strategy of decreasing INFLATION effects on accounting income. Studies show that horizontal justice as the most important dimension of tax justice is affected by accounting income distortion because of INFLATION effect. According to investigations two strategies are suggested to INFLATION effects decreasing or write-off. First, specific INFLATION effect decreasing accounting procedures and the other one is to utilizing INFLATION accounting system. Studies indicate that adjusted current cost system is the best system for general price level variation. However, studies hold that according to Iranian tax regulations, firms have to report their income on the basis of historical cost and non of the two suggested strategies are not allowed to report tax income and horizontal justice will not achieved afterward. Finally, studies indicate that if tax system does not get adjusted because of INFLATION, no access to tax justice will appear and firms’ wrong valuation will be occurred.

This study explores the relationship between INFLATION, INFLATION uncertainty and output growth enjoying the quarterly data of consumer price index in Iran from1368:1 to 1387:2. For this purpose the exponential GARCH model and granger causality test were used. The results indicate a bilaterally causal relationship between INFLATION and INFLATION uncertainty, while there is no significant relationship between INFLATION uncertainty and output growth and also between INFLATION and output growth.

The term norm INFLATION appears to be a generalization, towards all sources of law, of legislative INFLATION, defined as a disproportionate increase in the volume and length of legislation. As with monetary INFLATION, the overabundance of sings risk causing their devaluation (Carbonnier). Is this a benign illness or the symptom of systemic pathology of the legal system? Is it specific to our time or has it been known before? Are the effects visible throughout the law or confined to particular areas of it? If norm INFLATION produces undesirable effects that deserve our attention, we should look at this scope, now and in the past, its foreseeable effects, its possible causes and remedies that might counter it. This article looks at the phenomenon of norm INFLATION, with reference mostly to Canada, France, the UK and the USA, and with a glance at the Iranian situation. The article demonstrates how economic analysis can be used to broach the matter.

The purpose of this study is to test the hypothesis that INFLATION uncertainty increase at higher level of INFLATION. Our analysis is based on the generalized conditional heteroscedasticity (GARCH) class of models, which allow the conditional variance of the error term to be time-varying. Since this variance is a proxy for INFLATION uncertainty, a positive relationship between the conditional variance and INFLATION would be interpreted as evidence that INFLATION uncertainty increase with the level of INFLATION. Our findings indicate that INFLATION causes INFLATION uncertainty (there is a significant positive relationship between INFLATION, and INFLATION uncertainty). According to this result, Central bank of Iran can reduce INFLATION uncertainty by reducing INFLATION.    

The paper investigates the relationship between INFLATION and INFLATION uncertainty using the Iranian data over the period 1959:03 – 2005:12. GARCH models are used to examine this relationship. Granger methods are employed to provide statistical evidence for the relationship between average INFLATION and INFLATION uncertainty. Threshold GARCH (TGARCH) models are considered to investigate asymmetry in the conditional variance of INFLATION. The Component GARCH (CGARCH) models are employed to decompose INFLATION uncertainty into a short-run and a long-run component by permitting transitory deviations of the conditional volatility around a time-varying trend. This model examines the presence of the long memory in the conditional variance of INFLATION.The findings show that increased INFLATION raises INFLATION uncertainty confirming the theoretical predictions made by Friedman. Furthermore, the findings of bi-directional causality support the Cukierman and Meltzer model. Using the standard TGARCH models, the presence of asymmetry is found in the conditional variance of annualized INFLATION, and finally the evidence of long memory exists in the conditional variance of annualized INFLATION.

This study investigates the relationship between INFLATION; INFLATION uncertainty; investment growth and economic growth, over the period 1367‐ 1387 in Iran. We used Trivariate‐GARCH model and our results indicate that the hypothesis of Friedman (1977) and Ball (1992) concerning that the increase in INFLATION rate, leads to INFLATION uncertainty, is not rejected for Iran during the period of our study. Thus, we conclude that any variable that increases the rate of INFLATION, leads to INFLATION uncertainty and consequently reduces the economic growth in Iran. Therefore it is helpful if government pursue an INFLATION targeting policy. Our results also confirm that any increase in INFLATIONary uncertainty reduces the rate of investment and production as indicated by Bernanke (1983); Dixit & Pyndyk (1994) and Friedman (1977). Finally our model rejects the hypothesis of Holland (1995) i.e. there exist a negative causality between INFLATION uncertainty and INFLATION rate.